New York State Bill S3921
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[ Memo ]
Text of New York State Bill S03921
S T A T E O F N E W Y O R K
________________________________________________________________________
3921
1997-1998 Regular Sessions
I N S E N A T E
March 25, 1997
___________
Introduced by Sens. MARKOWITZ, LEICHTER, ABATE, GONZALEZ, KRUGER, LACH-
MAN, MENDEZ, MONTGOMERY, ONORATO, OPPENHEIMER, PATERSON, SANTIAGO,
SEABROOK, SMITH, STAVISKY, WALDON -- read twice and ordered printed,
and when printed to be committed to the Committee on Housing,
Construction and Community Development
AN ACT to amend the emergency tenant protection act of nineteen seven-
ty-four, the administrative code of the city of New York and the emer-
gency housing rent control law, in relation to conforming the method
for setting rents for rent controlled apartments to the methodology
used for rent stabilized apartments providing for the establishment of
rent guidelines and applicable adjustments and making transitional
provisions for the implementation of such methodology, and creating
statutory tenancies in rent stabilized apartments; to amend the gener-
al business law, in relation to conversion of residential property to
cooperative or condominium ownership; raising percentage needed to
declare non-eviction plans effective; providing for establishment of
certain reserve funds; and changing the computation of excessive
vacancies which prevents conversion and eliminating the filing of
eviction plans with the attorney general in condominium and cooper-
ative residential conversions and repealing paragraph (c) of subdivi-
sion 1, subparagraph (v) of paragraph (c) and paragraph (d) of subdi-
vision 2 of section 352-eee and paragraph (c) of subdivision 1,
subparagraph (v) of paragraph (c) and paragraph (d) of subdivision 2
of section 352-eeee of the general business law relating thereto; and
to amend the administrative code of the city of New York, the emergen-
cy tenant protection act of nineteen seventy-four and the emergency
rent control law, in relation to extending the length of time over
which major capital improvement expenses may be recovered altering
vacancy allowance provisions and providing for rent increases for
certain housing accommodations and to amend chapter 576 of the laws of
1974, amending the emergency housing rent control law relating to the
control of and stabilization of rent in certain cases, chapter 329 of
the laws of 1963, amending the emergency housing rent control law
relating to the recontrol of rents in certain cases, chapter 555 of
the laws of 1982, amending the general business law and the adminis-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
{ } is old law to be omitted.
LBD01457-06-7
S. 3921 2
trative code of the city of New York relating to conversion of rental
residential property to cooperative or condominium ownership in the
city of New York and chapter 402 of the laws of 1983, amending the
general business law relating to conversion of rental residential
property to cooperative or condominium ownership in certain munici-
palities in the counties of Nassau, Westchester and Rockland, in
relation to making such provisions ongoing and to repeal subdivision 2
of section 1 of chapter 274 of the laws of 1946, constituting the
emergency housing rent control law, relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "Rent and Tenant Protection Act of 1997".
3 S 2. Legislative Findings. Legislative findings and declaration. The
4 legislature hereby finds and declares that the public emergency which
5 led to the enactment of the laws regulating residential rents and
6 evictions continues to exist, that such emergency continues to necessi-
7 tate the intervention of state and local governments in order to prevent
8 speculative, unwarranted and abnormal increases in rents and unjust and
9 arbitrary evictions so long as such emergency exists, without further
10 periodic authorization by the legislature; that, because of the shortage
11 of decent, safe, and available housing, market forces do not operate
12 properly, and it is necessary therefore to prevent the exaction of
13 unjust or unreasonable rents and rental agreements, and to forestall
14 eviction and other disruptive practices tending to produce threats to
15 the public health, safety and general welfare; that the general welfare
16 depends in part on the maintenance and preservation of the existing
17 stock of privately owned rental housing; that to assure such maintenance
18 and preservation, responsible owners should be encouraged to own, invest
19 in and maintain such housing without exacting unwarranted rent increases
20 or rental agreements; that the existing laws regulating residential
21 rents and evictions would better promote equity and serve the public
22 interest if certain amendments were made thereto, including the estab-
23 lishment of a guidelines adjustment system for rent controlled housing
24 accommodations, and the substitution of statutory tenancies for the
25 current renewal lease system for rent stabilized housing accommodations,
26 including a limitation on the allowability of any vacancy rental
27 increase by a rent guidelines board.
28 The legislature further finds and declares that additional protections
29 are needed in the laws governing the conversion of rental housing to
30 cooperative and condominium ownership in order to protect tenants in
31 possession who do not desire or who are unable to afford to purchase
32 their units from unreasonable rent increases and imminent eviction
33 during the conversion process, to insure that scarce rental housing
34 units are not deliberately held off the market in preparation for such
35 conversions at a time when many areas are experiencing a critical short-
36 age of affordable rental housing, to insure that housing converted to
37 cooperative and condominium ownership is managed with a degree of
38 participation and control by cooperators and individual condominium
39 owners who live in their buildings, and that funds are set aside in such
40 buildings for the purpose of making capital repairs, replacements and
41 improvements.
S. 3921 3
1 The legislature further finds and declares the necessity to balance
2 the concern for insuring adequate incentives for investment in build-
3 ing-wide major capital improvements or improvements in individual hous-
4 ing accommodations in order to preserve and improve the housing stock
5 with the concern for maintaining the affordability of such housing
6 stock.
7 The legislature therefore declares that the provisions of this act are
8 necessary to protect the public health, safety and general welfare. The
9 necessity in the public interest for the provisions hereinafter enacted
10 is hereby declared as a matter of legislative determination.
11 S 3. Subdivision b of section 4 of section 4 of chapter 576 of the
12 laws of 1974, constituting the emergency tenant protection act of nine-
13 teen seventy-four, as amended by chapter 486 of the laws of 1976, the
14 opening paragraph as amended by chapter 403 of the laws of 1983 and the
15 second and third undesignated paragraphs as amended by chapter 330 of
16 the laws of 1980, is amended to read as follows:
17 b. A county rent guidelines board shall establish annually guidelines
18 for rent adjustments which, at its sole discretion may be varied and
19 different for and within the several zones and jurisdictions of the
20 board, and in determining whether rents for housing accommodations as to
21 which an emergency has been declared pursuant to this act shall be
22 adjusted, shall consider among other things (1) the economic condition
23 of the residential real estate industry in the affected area including
24 such factors as the prevailing and projected (i) real estate taxes and
25 sewer and water rates, (ii) gross operating AND maintenance costs
26 (including insurance rates, governmental fees, cost of fuel and labor
27 AND ADMINISTRATIVE costs), (iii) costs and availability of financing
28 (including effective rates of interest), (iv) over-all supply of housing
29 accommodations and over-all vacancy rates, (V) GROSS RENTAL INCOME,
30 INCLUDING INCOME FROM OTHER THAN RESIDENTIAL RENTS, (VI) ECONOMIC BENE-
31 FITS, OTHER THAN RENTAL INCOME, DERIVED FROM THE OWNERSHIP AND UPGRADING
32 OF RENTAL PROPERTY, (2) relevant data from the current and projected
33 cost of living indices for the affected area, (3) such other data as
34 may be made available to it. IN CALCULATING LABOR AND ADMINISTRATIVE
35 COSTS, THE RENT GUIDELINES BOARD SHALL CONSIDER THE FEASIBILITY OF
36 IMPUTING A VALUE TO THE ACTUAL, VERIFIABLE UNSALARIED LABOR AND ADMINIS-
37 TRATIVE TASKS PERFORMED BY BUILDING OWNERS OR MEMBERS OF THEIR IMMEDIATE
38 FAMILY WHO RESIDE WITH THEM. IF THE INCLUSION OF THE VALUE OF SUCH LABOR
39 AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE BOARD, THEY SHALL BE
40 INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN. THE RENT GUIDELINES
41 BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LANDLORDS SUBJECT TO REGULATION
42 UNDER THIS ACT TO MAKE AVAILABLE THEIR BOOKS AND RECORDS REGARDING
43 INCOME, EXPENDITURES, TAX BENEFITS AND FINANCING ARRANGEMENTS FOR EXAM-
44 INATION BY THE BOARD AND THE BOARD SHALL UTILIZE THE RESULTS OF SUCH
45 SAMPLE AS ONE OF THE CRITERIA UPON WHICH THEIR FINDINGS ARE BASED. SUCH
46 SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESENTATIVE OF THE TYPES OF
47 BUILDINGS WHICH ARE SUBJECT TO REGULATION UNDER THIS LAW. ANY INFORMA-
48 TION PROVIDED BY LANDLORDS PURSUANT TO THIS SUBDIVISION REGARDING AN
49 INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL NOT BE SUBJECT TO THE
50 FREEDOM OF INFORMATION LAW AND THE RENT GUIDELINES BOARD SHALL SAFEGUARD
51 THE CONFIDENTIALITY OF SUCH INFORMATION PROVIDED HOWEVER THAT THE BOARD
52 SHALL MAKE AVAILABLE TO THE PUBLIC CUMULATIVE AND STATISTICAL RESULTS OF
53 THE REPRESENTATIVE SAMPLE OF BOOKS AND RECORDS REQUIRED HEREIN. As soon
54 as practicable after its creation and thereafter not later than {July}
55 OCTOBER first of each year, a rent guidelines board shall file with the
56 state division of housing and community renewal its findings for the
S. 3921 4
1 preceding calendar year, and shall accompany such findings with a state-
2 ment of the maximum rate or rates of rent adjustment, if any, for one or
3 more classes of accommodation subject to this act, authorized for leases
4 or other rental agreements commencing during the next succeeding twelve
5 months. The standards for rent adjustments may be applicable for the
6 entire county or may be varied according to such zones or jurisdictions
7 within such county as the board finds necessary to achieve the purposes
8 of this subdivision. THE ADDITIONAL ALLOWANCE, IF ANY, FOR LEASES ON
9 VACANT APARTMENTS SHALL NOT EXCEED FIVE PERCENT.
10 The standards for rent adjustments established annually shall be
11 effective for leases commencing on {October} JANUARY first of each year
12 and during the next succeeding twelve months whether or not the board
13 has filed its findings and statement of the maximum rate or rates of
14 rent adjustment by {July} OCTOBER first of each year. If such lease is
15 entered into before such filing by the board, it may provide for the
16 rent to be adjusted by the rates then in effect, subject to change by
17 the applicable rates of rent adjustment when filed, such change to be
18 effective as of the date of the commencement of the lease. Said lease
19 must provide that, if the new rates of rent adjustment differ for leases
20 of different terms, the tenant has the option of changing the original
21 lease term to any other term for which a rate of rent adjustment is set
22 by the board, with the rental to be adjusted accordingly.
23 Where a city, town or village shall act to determine the existence of
24 public emergency pursuant to section three of this act subsequent to the
25 establishment of annual guidelines for rent adjustments of the accommo-
26 dations subject to this act, the rent guidelines board as soon as prac-
27 ticable thereafter shall file its findings and rates of rent adjustment
28 for leases or other rental agreements for the housing accommodations in
29 such a city, town or village, which rates shall be effective for leases
30 or other rental agreements commencing on or after the effective date of
31 the determination.
32 S 4. Subdivisions c and d of section 4 of section 4 of chapter 4 of
33 chapter 576 of the laws of 1974, constituting the emergency tenant
34 protection act of nineteen seventy-four, are relettered subdivisions d
35 and e and a new subdivision c is added to read as follows:
36 C. IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS ACT, THE RENT
37 GUIDELINES BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE SUBPOE-
38 NAS, CONDUCT INVESTIGATIONS, MAKE INSPECTIONS AND DESIGNATE OFFICERS TO
39 HEAR AND REPORT.
40 S 5. Section 4 of section 4 of chapter 576 of the laws of 1974,
41 constituting the emergency tenant protection act of nineteen seventy-
42 four, is amended by adding a new subdivision f to read as follows:
43 F. NOTWITHSTANDING ANY PROVISIONS OF THIS ACT TO THE CONTRARY:
44 (1) EFFECTIVE ON AND AFTER JANUARY 1, 1998 THE RENT ADJUSTMENTS ESTAB-
45 LISHED PURSUANT TO THIS SECTION SHALL BE APPLICABLE TO VACANCY LEASES
46 WHICH COMMENCE DURING THE CALENDAR YEAR FOLLOWING THE YEAR IN WHICH THE
47 ADJUSTMENT IS ESTABLISHED AND THE ADJUSTMENT FOR RENEWAL LEASES SHALL
48 CONSTITUTE THE RENT ADJUSTMENTS PROVIDED FOR IN SUBDIVISION D OF SECTION
49 TEN OF THIS ACT EFFECTIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN
50 WHICH THE ADJUSTMENT IS ESTABLISHED.
51 (2) NO LATER THAN OCTOBER 1, 1997 EACH RENT GUIDELINES BOARD SHALL
52 ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE TO LEASES WHICH EXPIRE
53 BETWEEN JANUARY 1,1998 AND DECEMBER 31, 1998. NO LATER THAN OCTOBER 1,
54 1998 EACH GUIDELINE BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLI-
55 CABLE TO LEASES WHICH EXPIRE BETWEEN JANUARY 1, 1999 AND DECEMBER 31,
S. 3921 5
1 1999. SUCH TRANSITIONAL ADJUSTMENT SHALL BE A PRO-RATA PORTION OF THE
2 ONE OR TWO YEAR RENEWAL ADJUSTMENTS.
3 S 6. Subdivision a of section 7 of section 4 of chapter 576 of the
4 laws of 1974, constituting the emergency tenant protection act of nine-
5 teen seventy-four, is amended to read as follows:
6 a. In order to collect a rent adjustment authorized pursuant to the
7 provisions of {subdivision b of} section four, the owner of housing
8 accommodations subject to this act located in a city having a population
9 of less than one million or a town or village must file with the state
10 division of housing and community renewal {on a form which it shall
11 prescribe} AS PART OF EACH REQUIRED REGISTRATION, a written certif-
12 ication that he is maintaining and will continue to maintain all
13 services furnished on the date upon which this act becomes a law or
14 required to be furnished by any law, ordinance or regulation applicable
15 to the premises. In addition to any other remedy afforded by law, any
16 tenant may apply to the state division of housing and community renewal
17 for a reduction in the rent to the level in effect prior to its most
18 recent adjustment, OR ON OR AFTER JANUARY 1, 1998, ITS MOST RECENT
19 INCREMENTAL ADJUSTMENT, and the state division of housing and community
20 renewal {may} SHALL so reduce the rent if it finds that the owner has
21 failed to maintain such services. WHERE THE RENTAL BEING CHARGED FOR A
22 HOUSING ACCOMMODATION IS THE INITIAL LEGAL REGULATED RENT, THE STATE
23 DIVISION OF HOUSING AND COMMUNITY RENEWAL SHALL REDUCE THE RENT BY THE
24 GUIDELINES RATE OF ADJUSTMENT WHICH WOULD HAVE AFFECTED THE TENANT`S
25 LEASE HAD THE LEASE BEEN A LEASE FOR A HOUSING ACCOMMODATION PREVIOUSLY
26 SUBJECT TO THIS ACT. The owner shall be supplied with a copy of the
27 application and shall be permitted to file an answer thereto. A hearing
28 may be held upon the request of either party, or the state division of
29 housing and community renewal may hold a hearing upon its own motion.
30 The state division of housing and community renewal may consolidate the
31 proceedings for two or more petitions applicable to the same building.
32 If the state division of housing and community renewal finds that the
33 owner has knowingly filed a false certification, it shall, in addition
34 to abating the rent, assess the owner with the reasonable costs of the
35 proceeding, including reasonable attorneys` fees, and impose a penalty
36 not in excess of two hundred fifty dollars for each false certification.
37 S 7. Section 10 of section 4 of chapter 576 of the laws of 1974,
38 constituting the emergency tenant protection act of nineteen seventy-
39 four, is amended by adding two new subdivisions d and e to read as
40 follows:
41 D. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, ON OR AFTER
42 JANUARY 1, 1998:
43 (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
44 THE OWNER IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
45 WHICH IS SUBJECT TO REGULATION UNDER THIS ACT BY ACTION TO EVICT OR TO
46 RECOVER POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON ATTEMPT SUCH
47 REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
48 TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
49 HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
50 LEASE AGREEMENTS, OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO
51 WHICH CONFLICTS WITH THE PROVISIONS OF THIS ACT, EXCEPT ON ONE OR MORE
52 OF THE GROUNDS SET FORTH IN THIS ACT, OR THE REGULATIONS PROMULGATED
53 PURSUANT TO THIS ACT, INCLUDING ANY PROVISION OF THIS ACT WHICH PERMITS
54 AN OWNER TO REFUSE TO RENEW A LEASE SUBJECT TO THE FOLLOWING: NO
55 PROCEEDING TO RECOVER POSSESSION FOR (A) THE USE OF THE HOUSING ACCOMMO-
56 DATION BY AN OWNER OR A MEMBER OF THE OWNER`S IMMEDIATE FAMILY OR (B) A
S. 3921 6
1 TENANT`S FAILURE TO OCCUPY THE HOUSING ACCOMMODATION AS HIS OR HER
2 PRIMARY RESIDENCE SHALL BE COMMENCED UNLESS THE TENANT HAS BEEN NOTIFIED
3 IN WRITING OF THE OWNER`S INTENT TO COMMENCE SUCH PROCEEDING WHICH
4 NOTICE SHALL BE SERVED NOT MORE THAN ONE HUNDRED FIFTY DAYS AND NOT LESS
5 THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE COMMENCEMENT OF SUCH ACTION.
6 NO SUCH PROCEEDING SHALL BE MAINTAINED AGAINST THE SAME TENANT MORE THAN
7 ONCE IN ANY TWENTY-FOUR MONTH PERIOD.
8 (2) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
9 OWNERS SHALL NO LONGER BE REQUIRED TO GRANT AND TENANTS SHALL NO LONGER
10 BE REQUIRED TO ACCEPT RENEWAL LEASES. HOWEVER, OWNERS SHALL BE REQUIRED
11 TO GRANT AND FURNISH TO THE TENANT A VACANCY LEASE, IN ACCORDANCE WITH
12 SUBDIVISIONS A AND C OF THIS SECTION, FOR A TERM WHICH SHALL EXPIRE ON
13 THE THIRTY-FIRST DAY OF DECEMBER OF THE YEAR IN WHICH IT COMMENCED OR OF
14 THE FOLLOWING YEAR IF THE LAST GUIDELINE ADJUSTMENT WAS A TWO YEAR
15 ADJUSTMENT.
16 (3) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS PROVIDED IN PARA-
17 GRAPH TWO OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
18 LEGAL REGULATED RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
19 UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY COLLECTED FOR THE SAME TWELVE
20 MONTH GUIDELINE PERIOD, AND BY ANY APPLICABLE GUIDELINES ADJUSTMENT
21 UNLESS A ONE OR TWO YEAR ADJUSTMENT WAS PREVIOUSLY COLLECTED FOR THE
22 SAME TWELVE MONTH GUIDELINE PERIOD OR A TWO YEAR GUIDELINE ADJUSTMENT
23 WAS COLLECTED FOR THE PREVIOUS TWELVE MONTH GUIDELINE PERIOD.
24 (4) THE OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
25 RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE STATE DIVI-
26 SION OF HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
27 HOUSING ACCOMMODATION TO A NEW TENANT.
28 (5) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER 31, 1997 HAS EXPIRED,
29 OR WHOSE VACANCY LEASE ENTERED INTO ON OR AFTER JANUARY 1, 1998 HAS
30 PASSED ITS FIRST ANNIVERSARY, AND WHO THEREAFTER VACATES A HOUSING
31 ACCOMMODATION WITHOUT GIVING THE OWNER AT LEAST THIRTY DAYS` WRITTEN
32 NOTICE BY REGISTERED OR CERTIFIED MAIL OF HIS OR HER INTENTION TO
33 VACATE, SHALL BE LIABLE TO THE OWNER FOR THE LOSS OF RENT SUFFERED BY
34 THE OWNER, BUT NOT EXCEEDING ONE MONTH`S RENT, EXCEPT WHERE THE TENANT
35 HAS BEEN REMOVED OR VACATES PURSUANT TO THE PROVISIONS OF THIS SECTION.
36 SUCH NOTICE SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL
37 PERIOD IMMEDIATELY PRIOR TO SAID THIRTY-DAY PERIOD.
38 (6) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
39 BER 31, 1998 SHALL BE ADJUSTED EFFECTIVE JANUARY 1, 1998 AND ON THE
40 FIRST DAY OF JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THERE-
41 AFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED, BY THE RENT ADJUST-
42 MENTS ESTABLISHED BY THE RENT GUIDELINES BOARD.
43 (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
44 ARY 1, 1998 WHICH EXPIRES BETWEEN JANUARY 1, 1998 AND DECEMBER 31, 1999
45 SHALL BE ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING ITS EXPIRATION BY
46 THE APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY THE RENT GUIDE-
47 LINES BOARD AND ON THE FIRST DAY OF JANUARY OF EACH YEAR THEREAFTER, OR
48 EVERY OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED,
49 BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES BOARD.
50 (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
51 JANUARY 1, 1998 SHALL IN ADDITION TO ANY ADJUSTMENT PROVIDED FOR IN
52 PARAGRAPH THREE OF THIS SUBDIVISION BE ADJUSTED ON THE FIRST DAY OF
53 JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A TWO
54 YEAR ADJUSTMENT WAS LAST SELECTED, BY THE RENT ADJUSTMENT ESTABLISHED BY
55 THE RENT GUIDELINES BOARD.
S. 3921 7
1 E. OWNERS SHALL NO LONGER BE REQUIRED TO MAKE LEASE RENEWAL OFFERS AND
2 TENANTS SHALL NO LONGER BE REQUIRED TO RESPOND TO SUCH OFFERS FOR ANY
3 LEASE WHICH WOULD COMMENCE ON OR AFTER JANUARY 1, 1998. PROVIDED,
4 HOWEVER, BETWEEN OCTOBER 1, 1997 AND DECEMBER 1, 1997 AND EVERY YEAR
5 THEREAFTER DURING THE PERIOD OF OCTOBER FIRST AND DECEMBER FIRST ANY
6 TENANT COVERED BY THE PROVISIONS OF THIS ACT MAY, AS AN ALTERNATIVE TO
7 THE ANNUAL ADJUSTMENT, ELECT A TWO YEAR RENT ADJUSTMENT WHICH WILL BE
8 APPLICABLE COMMENCING THE FOLLOWING FIRST DAY OF JANUARY FOR THE NEXT
9 TWO SUCCEEDING CALENDAR YEARS. SUCH ELECTION SHALL BE MADE ON A FORM
10 PRESCRIBED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BY CERTIFIED
11 MAIL. FAILURE TO MAKE SUCH TIMELY ELECTION SHALL RESULT IN THE IMPOSI-
12 TION OF A ONE YEAR ADJUSTMENT.
13 S 8. Section 10-a of section 4 of chapter 576 of the laws of 1974,
14 constituting the emergency tenant protection act of nineteen seventy-
15 four, is amended by adding a new closing paragraph to read as follows:
16 NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION OR SECTION 226-B OF THE
17 REAL PROPERTY LAW TO THE CONTRARY, ANY TENANT COVERED BY THE PROVISIONS
18 OF THIS ACT SHALL BE ENTITLED TO THE BENEFITS OF THIS SECTION EVEN IF
19 THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE PROVISIONS OF THIS SECTION
20 AND SECTION 226-B OF THE REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
21 S 9. Section 26-504 of the administrative code of the city of New York
22 is amended by adding a new subdivision d to read as follows:
23 D. HOUSING ACCOMMODATIONS WHICH BECOME SUBJECT TO THIS LAW PURSUANT TO
24 ARTICLE SEVEN-C OF THE MULTIPLE DWELLING LAW. SUCH ACCOMMODATIONS SHALL
25 CONTINUE TO BE SUBJECT TO THIS LAW NOTWITHSTANDING THE EXPIRATION OR
26 TERMINATION OF SUCH ARTICLE.
27 S 10. Subdivision b of section 26-509 of the administrative code of
28 the city of New York is amended by adding a new paragraph 10 to read as
29 follows:
30 (10) NOTWITHSTANDING ANY PROVISIONS OF PARAGRAPHS ONE AND SIX OF THIS
31 SUBDIVISION TO THE CONTRARY, EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED
32 NINETY-EIGHT, A TWO YEAR RENEWAL LEASE SHALL NOT BE A PREREQUISITE FOR A
33 TENANT TO BE ELIGIBLE FOR A RENT EXEMPTION UNDER THIS SUBDIVISION WHO
34 OTHERWISE QUALIFIES FOR SUCH RENT EXEMPTION. A RENT EXEMPTION ORDER
35 SHALL NO LONGER CONTAIN A PROVISION GIVING NOTICE THAT A TENANT MUST
36 ENTER INTO A TWO YEAR RENEWAL LEASE FOR CONTINUED ELIGIBILITY FOR A RENT
37 EXEMPTION UNDER THIS SUBDIVISION.
38 S 11. Section 26-510 of the administrative code of the city of New
39 York is amended by adding a new subdivision j to read as follows:
40 J. NOTWITHSTANDING ANY PROVISIONS OF THIS CHAPTER TO THE CONTRARY:
41 (1) EFFECTIVE ON AND AFTER JANUARY FIRST, NINETEEN HUNDRED
42 NINETY-EIGHT THE RENT ADJUSTMENTS ESTABLISHED PURSUANT TO THIS SECTION
43 SHALL BE APPLICABLE TO VACANCY LEASES WHICH COMMENCE DURING THE CALENDAR
44 YEAR FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT IS ESTABLISHED AND THE
45 ADJUSTMENT FOR RENEWAL LEASES SHALL CONSTITUTE THE RENT ADJUSTMENTS
46 PROVIDED FOR IN SUBDIVISION F OF SECTION 26-511 OF THIS CHAPTER EFFEC-
47 TIVE THE FIRST DAY OF JANUARY FOLLOWING THE YEAR IN WHICH THE ADJUSTMENT
48 IS ESTABLISHED.
49 (2) NO LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-SEVEN THE
50 RENT GUIDELINES BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE
51 TO LEASES WHICH EXPIRE BETWEEN JANUARY FIRST, NINETEEN HUNDRED
52 NINETY-EIGHT AND DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-EIGHT.
53 NO LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-EIGHT THE GUIDE-
54 LINES BOARD SHALL ESTABLISH TRANSITIONAL GUIDELINES APPLICABLE TO LEASES
55 WHICH EXPIRE BETWEEN JANUARY FIRST, NINETEEN HUNDRED NINETY-NINE AND
56 DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-NINE. SUCH TRANSITIONAL
S. 3921 8
1 ADJUSTMENT SHALL BE A PRO-RATA PORTION OF THE ONE OR TWO YEAR RENEWAL
2 ADJUSTMENTS.
3 S 12. Paragraph 12 of subdivision c of section 26-511 of the adminis-
4 trative code of the city of New York is amended by adding a new closing
5 paragraph to read as follows:
6 NOTWITHSTANDING ANY PROVISIONS OF THIS PARAGRAPH OR SECTION TWO
7 HUNDRED TWENTY-SIX-B OF THE REAL PROPERTY LAW TO THE CONTRARY ANY TENANT
8 COVERED BY THE PROVISIONS OF THIS LAW SHALL BE ENTITLED TO THE BENEFITS
9 OF THIS PARAGRAPH EVEN IF THE TENANT DOES NOT HAVE A WRITTEN LEASE. THE
10 PROVISIONS OF THIS PARAGRAPH AND SECTION TWO HUNDRED TWENTY-SIX-B OF THE
11 REAL PROPERTY LAW SHALL BE APPLIED ACCORDINGLY.
12 S 13. Section 26-511 of the administrative code of the city of New
13 York is amended by adding two new subdivisions f and g to read as
14 follows:
15 F. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS CHAPTER, ON OR
16 AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT:
17 (1) NO TENANT, SO LONG AS HE OR SHE CONTINUES TO PAY THE RENT TO WHICH
18 THE OWNER IS ENTITLED, SHALL BE REMOVED FROM ANY HOUSING ACCOMMODATION
19 WHICH IS SUBJECT TO REGULATION UNDER THIS CHAPTER BY ACTION TO EVICT OR
20 TO RECOVER POSSESSION, OR OTHERWISE, NOR SHALL ANY PERSON ATTEMPT SUCH
21 REMOVAL OR EXCLUSION FROM POSSESSION NOTWITHSTANDING THE FACT THAT THE
22 TENANT HAS NO LEASE OR THAT HIS OR HER LEASE, OR OTHER RENTAL AGREEMENT,
23 HAS EXPIRED OR OTHERWISE TERMINATED, AND NOTWITHSTANDING ANY CONTRACT,
24 LEASE AGREEMENTS, OR OBLIGATION HERETOFORE OR HEREAFTER ENTERED INTO
25 WHICH CONFLICTS WITH THE PROVISIONS OF THIS CHAPTER, EXCEPT ON ONE OR
26 MORE OF THE GROUNDS SET FORTH IN THIS CHAPTER, OR THE CODE OR REGU-
27 LATIONS PROMULGATED PURSUANT TO THIS CHAPTER, INCLUDING THE PROVISIONS
28 OF THIS CHAPTER WHICH PERMIT AN OWNER TO REFUSE TO RENEW A LEASE SUBJECT
29 TO THE FOLLOWING: NO PROCEEDING TO RECOVER POSSESSION FOR (A) THE USE OF
30 THE HOUSING ACCOMMODATION BY AN OWNER OR A MEMBER OF THE OWNER`S IMMEDI-
31 ATE FAMILY OR (B) A TENANT`S FAILURE TO OCCUPY THE HOUSING ACCOMMODATION
32 AS HIS OR HER PRIMARY RESIDENCE SHALL BE COMMENCED UNLESS THE TENANT HAS
33 BEEN NOTIFIED IN WRITING OF THE OWNER`S INTENT TO COMMENCE SUCH PROCEED-
34 ING WHICH NOTICE SHALL BE SERVED NOT MORE THAN ONE HUNDRED FIFTY DAYS
35 AND NOT LESS THAN ONE HUNDRED TWENTY DAYS PRIOR TO THE COMMENCEMENT OF
36 SUCH ACTION. NO SUCH PROCEEDING SHALL BE MAINTAINED AGAINST THE SAME
37 TENANT MORE THAN ONCE IN ANY TWENTY-FOUR MONTH PERIOD.
38 (2) PURSUANT TO THE PROVISIONS OF PARAGRAPH ONE OF THIS SUBDIVISION,
39 OWNERS SHALL NO LONGER BE REQUIRED TO GRANT AND TENANTS SHALL NO LONGER
40 BE REQUIRED TO ACCEPT RENEWAL LEASES. HOWEVER, OWNERS SHALL BE REQUIRED
41 TO GRANT AND FURNISH TO THE TENANT A VACANCY LEASE, IN ACCORDANCE WITH
42 SUBDIVISION E OF THIS SECTION FOR A TERM WHICH SHALL EXPIRE ON DECEMBER
43 THIRTY-FIRST OF THE YEAR IN WHICH IT COMMENCES OR OF THE FOLLOWING YEAR
44 IF THE LAST GUIDELINE ADJUSTMENT WAS A TWO YEAR ADJUSTMENT.
45 (3) WHERE A TENANT ENTERS INTO A VACANCY LEASE AS PROVIDED IN PARA-
46 GRAPH TWO OF THIS SUBDIVISION, THE RENTAL PROVIDED THEREIN SHALL BE THE
47 LEGAL REGULATED RENT, AS ADJUSTED BY ANY APPLICABLE VACANCY ALLOWANCE,
48 UNLESS A VACANCY ALLOWANCE WAS PREVIOUSLY COLLECTED FOR THE SAME TWELVE
49 MONTH GUIDELINE PERIOD AND BY ANY APPLICABLE GUIDELINES ADJUSTMENT
50 UNLESS A ONE OR TWO YEAR ADJUSTMENT WAS PREVIOUSLY COLLECTED FOR THE
51 SAME TWELVE MONTH GUIDELINE PERIOD OR A TWO YEAR GUIDELINE ADJUSTMENT
52 WAS COLLECTED FOR THE PREVIOUS TWELVE MONTH GUIDELINE PERIOD.
53 (4) THE OWNER SHALL BE REQUIRED TO SERVE THE TENANT WITH A NOTICE OF
54 RIGHTS AND DUTIES OF OWNERS AND TENANTS PROMULGATED BY THE STATE DIVI-
55 SION OF HOUSING AND COMMUNITY RENEWAL AT THE TIME OF THE RENTAL OF THE
56 HOUSING ACCOMMODATION TO A NEW TENANT.
S. 3921 9
1 (5) ANY TENANT WHOSE LEASE IN EFFECT ON DECEMBER THIRTY-FIRST, NINE-
2 TEEN HUNDRED NINETY-SEVEN HAS EXPIRED, OR WHOSE VACANCY LEASE ENTERED
3 INTO ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT HAS PASSED
4 ITS FIRST ANNIVERSARY, AND WHO THEREAFTER VACATES A HOUSING ACCOMMO-
5 DATION WITHOUT GIVING THE OWNER AT LEAST THIRTY DAYS` WRITTEN NOTICE BY
6 REGISTERED OR CERTIFIED MAIL OF HIS OR HER INTENTION TO VACATE SHALL BE
7 LIABLE TO THE OWNER FOR THE LOSS OF RENT SUFFERED BY THE OWNER, BUT NOT
8 EXCEEDING ONE MONTH`S RENT, EXCEPT WHERE THE TENANT HAS BEEN REMOVED OR
9 VACATES PURSUANT TO THE PROVISIONS OF THIS SUBDIVISION. SUCH NOTICE
10 SHALL BE POSTMARKED ON OR BEFORE THE LAST DAY OF THE RENTAL PERIOD IMME-
11 DIATELY PRIOR TO SUCH THIRTY-DAY PERIOD.
12 (6) (A) THE LEGAL REGULATED RENT FOR ANY LEASE WHICH EXPIRES ON DECEM-
13 BER THIRTY-FIRST, NINETEEN HUNDRED NINETY-SEVEN SHALL BE ADJUSTED EFFEC-
14 TIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT AND ON THE FIRST DAY
15 OF JANUARY OF EACH YEAR THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A
16 TWO YEAR ADJUSTMENT WAS SELECTED, BY THE RENT ADJUSTMENTS ESTABLISHED BY
17 THE RENT GUIDELINES BOARD.
18 (B) THE LEGAL REGULATED RENT FOR ANY LEASE ENTERED INTO PRIOR TO JANU-
19 ARY FIRST, NINETEEN HUNDRED NINETY-EIGHT WHICH EXPIRES BETWEEN JANUARY
20 FIRST, NINETEEN HUNDRED NINETY-EIGHT AND DECEMBER THIRTY-FIRST, NINETEEN
21 HUNDRED NINETY-NINE SHALL BE ADJUSTED EFFECTIVE THE FIRST DAY FOLLOWING
22 ITS EXPIRATION BY THE APPLICABLE TRANSITIONAL ADJUSTMENTS ESTABLISHED BY
23 THE RENT GUIDELINES BOARD AND ON THE FIRST DAY OF JANUARY EACH YEAR
24 THEREAFTER, OR EVERY OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS
25 LAST SELECTED, BY THE RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES
26 BOARD.
27 (C) THE LEGAL REGULATED RENT FOR ANY VACANCY LEASE ENTERED ON OR AFTER
28 JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT SHALL IN ADDITION TO ANY
29 ADJUSTMENT PROVIDED FOR IN PARAGRAPH THREE OF THIS SUBDIVISION BE
30 ADJUSTED ON THE FIRST DAY OF JANUARY EACH YEAR THEREAFTER, OR EVERY
31 OTHER YEAR THEREAFTER IF A TWO YEAR ADJUSTMENT WAS LAST SELECTED, BY THE
32 RENT ADJUSTMENT ESTABLISHED BY THE RENT GUIDELINES BOARD.
33 G. OWNERS SHALL NO LONGER BE REQUIRED TO MAKE LEASE RENEWAL OFFERS AND
34 TENANTS SHALL NO LONGER BE REQUIRED TO RESPOND TO SUCH OFFERS FOR ANY
35 LEASE WHICH WOULD COMMENCE ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED
36 NINETY-EIGHT. PROVIDED, HOWEVER, BETWEEN OCTOBER FIRST, NINETEEN
37 HUNDRED NINETY-SEVEN AND DECEMBER FIRST, NINETEEN HUNDRED NINETY-SEVEN
38 AND EVERY YEAR THEREAFTER DURING THE PERIOD OF OCTOBER FIRST AND DECEM-
39 BER FIRST ANY TENANT COVERED BY THE PROVISIONS OF THIS LAW MAY, AS AN
40 ALTERNATIVE TO THE ANNUAL ADJUSTMENT, ELECT A TWO YEAR RENT ADJUSTMENT
41 WHICH WILL BE APPLICABLE COMMENCING THE FOLLOWING FIRST DAY OF JANUARY
42 FOR THE NEXT TWO SUCCEEDING CALENDAR YEARS. SUCH ELECTION SHALL BE MADE
43 ON A FORM PRESCRIBED BY THE DIVISION OF HOUSING AND COMMUNITY RENEWAL BY
44 CERTIFIED MAIL. FAILURE TO MAKE SUCH TIMELY ELECTION SHALL RESULT IN THE
45 IMPOSITION OF A ONE YEAR ADJUSTMENT.
46 S 14. Subdivision b of section 26-510 of the administrative code of
47 the city of New York is amended to read as follows:
48 b. The rent guidelines board shall establish annually guidelines for
49 rent adjustments, and in determining whether rents for housing accommo-
50 dations subject to the emergency tenant protection act of nineteen
51 seventy-four or this law shall be adjusted shall consider, among other
52 things (1) the economic condition of the residential real estate indus-
53 try in the affected area including such factors as the prevailing and
54 projected (i) real estate taxes and sewer and water rates, (ii) gross
55 operating AND maintenance costs (including insurance rates, governmental
56 fees, cost of fuel and labor AND ADMINISTRATIVE costs), (iii) costs and
S. 3921 10
1 availability of financing (including effective rates of interest), (iv)
2 over-all supply of housing accommodations and over-all vacancy rates,
3 (V) GROSS RENTAL INCOME INCLUDING INCOME FROM OTHER THAN RESIDENTIAL
4 RENTS, (VI) ECONOMIC BENEFITS, OTHER THAN RENTAL INCOME, DERIVED FROM
5 THE OWNERSHIP AND UPGRADING OF RENTAL PROPERTY, (2) relevant data from
6 the current and projected cost of living indices for the affected area,
7 (3) such other data as may be made available to it. IN CALCULATING LABOR
8 AND ADMINISTRATIVE COSTS, THE RENT GUIDELINES BOARD SHALL CONSIDER THE
9 FEASIBILITY OF IMPUTING A VALUE TO THE ACTUAL, VERIFIABLE UNSALARIED
10 LABOR AND ADMINISTRATIVE TASKS PERFORMED BY BUILDING OWNERS OR MEMBERS
11 OF THEIR IMMEDIATE FAMILY WHO RESIDE WITH THEM. IF THE INCLUSION OF THE
12 VALUE OF SUCH LABOR AND ADMINISTRATIVE TASKS IS DEEMED FEASIBLE BY THE
13 BOARD, THEY SHALL BE INCLUDED AS ONE OF THE FACTORS CONSIDERED HEREIN.
14 THE RENT GUIDELINES BOARD SHALL ANNUALLY REQUIRE A SAMPLE OF LANDLORDS
15 SUBJECT TO REGULATION UNDER THIS LAW TO MAKE AVAILABLE THEIR BOOKS AND
16 RECORDS REGARDING INCOME, EXPENDITURES, TAX BENEFITS AND FINANCING
17 ARRANGEMENTS FOR EXAMINATION BY THE BOARD AND THE BOARD SHALL UTILIZE
18 THE RESULTS OF SUCH SAMPLE AS ONE OF THE CRITERIA UPON WHICH THEIR FIND-
19 INGS ARE BASED. SUCH SAMPLE SHALL BE DESIGNED TO BE REASONABLY REPRESEN-
20 TATIVE OF THE TYPES OF BUILDINGS WHICH ARE SUBJECT TO REGULATION UNDER
21 THIS LAW. ANY INFORMATION PROVIDED BY LANDLORDS PURSUANT TO THIS SUBDI-
22 VISION REGARDING AN INDIVIDUAL BUILDING OR GROUP OF BUILDINGS SHALL NOT
23 BE SUBJECT TO THE FREEDOM OF INFORMATION LAW AND THE RENT GUIDELINES
24 BOARD SHALL SAFEGUARD THE CONFIDENTIALITY OF SUCH INFORMATION PROVIDED
25 HOWEVER THAT THE BOARD SHALL MAKE AVAILABLE TO THE PUBLIC CUMULATIVE AND
26 STATISTICAL RESULTS OF THE REPRESENTATIVE SAMPLE OF BOOKS AND RECORDS
27 REQUIRED HEREIN. Not later than {July} OCTOBER first of each year, the
28 rent guidelines board shall file with the city clerk its findings for
29 the preceding calendar year, and shall accompany such findings with a
30 statement of the maximum rate or rates of rent adjustment, if any, for
31 one or more classes of accommodations subject to this law, authorized
32 for leases or other rental agreements commencing on the next succeeding
33 {October} JANUARY first or within the twelve months thereafter. Such
34 findings and statement shall be published in the City Record. THE ADDI-
35 TIONAL ALLOWANCE, IF ANY, FOR LEASES ON VACANT APARTMENTS SHALL NOT
36 EXCEED FIVE PERCENT.
37 S 15. Subdivision i of section 26-510 of the administrative code of
38 the city of New York is relettered subdivision j and a new subdivision i
39 is added to read as follows:
40 I. IN FURTHERANCE OF ITS RESPONSIBILITY TO ENFORCE THIS LAW, THE RENT
41 GUIDELINES BOARD SHALL BE EMPOWERED TO ADMINISTER OATHS, ISSUE SUBPOE-
42 NAS, CONDUCT INVESTIGATIONS, MAKE INSPECTIONS AND DESIGNATE OFFICERS TO
43 HEAR AND REPORT.
44 S 16. Section 26-514 of the administrative code of the city of New
45 York, is amended to read as follows:
46 S 26-514 Maintenance of services. In order to collect a rent adjust-
47 ment authorized pursuant to the provisions of {subdivision d of} section
48 26-510 of this chapter an owner must file with the state division of
49 housing and community renewal, {on a form which the commissioner shall
50 prescribe} AS PART OF EACH REQUIRED REGISTRATION, a written certif-
51 ication that he or she is maintaining and will continue to maintain all
52 services furnished on the date upon which the emergency tenant
53 protection act of nineteen seventy-four becomes a law or required to be
54 furnished by any state law or local law, ordinance or regulation appli-
55 cable to the premises. In addition to any other remedy afforded by law,
56 any tenant may apply to the state division of housing and community
S. 3921 11
1 renewal, for a reduction in the rent to the level in effect prior to its
2 most recent adjustment and for an order requiring services to be main-
3 tained as provided in this section, and the commissioner shall so
4 reduce the rent if it is found that the owner has failed to maintain
5 such services. WHERE THE RENTAL BEING CHARGED FOR A HOUSING ACCOMMO-
6 DATION IS THE INITIAL LEGAL REGULATED RENT, THE COMMISSIONER SHALL
7 REDUCE THE RENT BY THE GUIDELINES RATE OF ADJUSTMENT WHICH WOULD HAVE
8 AFFECTED THE TENANT`S LEASE HAD THE LEASE BEEN A LEASE FOR A HOUSING
9 ACCOMMODATION PREVIOUSLY SUBJECT TO THIS CHAPTER. The owner shall also
10 be barred from applying for or collecting any further rent increases.
11 The restoration of such services shall result in the prospective elimi-
12 nation of such sanctions. The owner shall be supplied with a copy of the
13 application and shall be permitted to file an answer thereto. A hearing
14 may be held upon the request of either party, or the commissioner may
15 hold a hearing upon his or her own motion. The commissioner may consol-
16 idate the proceedings for two or more petitions applicable to the same
17 building or group of buildings or development. If the commissioner finds
18 that the owner has knowingly filed a false certification, it shall, in
19 addition to abating the rent, assess the owner with the reasonable costs
20 of the proceeding, including reasonable attorneys` fees, and impose a
21 penalty not in excess of two hundred fifty dollars for each false
22 certification.
23 S 17. Subdivision a of section 26-405 of the administrative code of
24 the city of New York is amended by adding a new paragraph 10 to read as
25 follows:
26 (10) (A) NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS SUBDIVISION,
27 EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, MAXIMUM RENTS
28 FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER SHALL NO LONGER BE
29 ESTABLISHED PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION,
30 OR LIMITED BY PARAGRAPH FIVE OF THIS SUBDIVISION, OR ADJUSTED BY SUBPAR-
31 AGRAPH (L) OR (N) OF PARAGRAPH ONE OF SUBDIVISION C OF THIS SECTION.
32 (B) EXCEPT AS OTHERWISE PROVIDED IN THIS PARAGRAPH, THE RENT GUIDE-
33 LINES BOARD ESTABLISHED PURSUANT TO SECTION 26-510 OF THIS TITLE SHALL
34 ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING ACCOMMODATIONS
35 SUBJECT TO THIS CHAPTER, IN THE MANNER PROVIDED BY SUCH SECTION. THE
36 FACT THAT THE HOUSING ACCOMMODATION IS SUBJECT TO THIS CHAPTER MAY NOT
37 BE CONSIDERED AS A FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT.
38 NOT LATER THAN OCTOBER FIRST, NINETEEN HUNDRED NINETY-SEVEN, AND NOT
39 LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER, THE RENT GUIDELINES BOARD
40 SHALL FILE WITH THE CITY CLERK ITS FINDINGS ESTABLISHED IN CONSIDERATION
41 OF THE ECONOMIC FACTORS LISTED IN SUBDIVISION B OF SECTION 26-510 OF
42 THIS TITLE, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE
43 MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASS-
44 ES OF ACCOMMODATIONS SUBJECT TO THIS CHAPTER AUTHORIZED FOR THE ADJUST-
45 MENT OF THE MAXIMUM RENT OF THE HOUSING ACCOMMODATION FOR THE TWELVE
46 MONTH PERIOD COMMENCING JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT AND
47 FOR EACH SUCCEEDING TWELVE MONTH PERIOD.
48 (C) EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, THE MAXI-
49 MUM RENT COLLECTIBLE FROM THE TENANT SHALL BE THE MAXIMUM RENT COLLECT-
50 IBLE ON DECEMBER THIRTY-FIRST, NINETEEN HUNDRED NINETY-SEVEN, INCLUDING
51 ANY RENT ADJUSTMENTS THEN COLLECTIBLE PURSUANT TO SUBPARAGRAPH (N) OF
52 PARAGRAPH ONE OF SUBDIVISION G OF THIS SECTION, AS SUCH RENT MAY BE
53 ADJUSTED PURSUANT TO SUBPARAGRAPH (B) OF THIS PARAGRAPH ANNUALLY, WITH-
54 OUT AN ORDER OF THE CITY RENT AGENCY, OR AS ADJUSTED PURSUANT TO ANY
55 OTHER PROVISION OF THIS CHAPTER, PROVIDED THAT WHERE THE LANDLORD WAS
56 NOT GRANTED OR DID NOT APPLY OR QUALIFY FOR AN INCREASE IN MAXIMUM RENT
S. 3921 12
1 PURSUANT TO PARAGRAPHS THREE AND FOUR OF THIS SUBDIVISION FOR THE YEARS
2 NINETEEN HUNDRED NINETY-FIVE, NINETEEN HUNDRED NINETY-SIX, NINETEEN
3 HUNDRED NINETY-SEVEN OR NINETEEN HUNDRED NINETY-EIGHT, A LANDLORD SHALL
4 NOT COLLECT ANY RENT INCREASE OR ADJUSTMENT OTHERWISE COLLECTIBLE UNDER
5 THIS SUBPARAGRAPH UNLESS AND UNTIL THE FIRST RENT PAYMENT DATE AFTER THE
6 LANDLORD CERTIFIES TO THE CITY RENT AGENCY THAT ALL RENT IMPAIRING
7 VIOLATIONS, AS DEFINED BY SECTION THREE HUNDRED TWO-A OF THE MULTIPLE
8 DWELLING LAW, AND AT LEAST EIGHTY PER CENTUM OF ALL OTHER VIOLATIONS OF
9 THE HOUSING MAINTENANCE CODE OR OTHER STATE OR LOCAL LAWS THAT IMPOSE
10 REQUIREMENTS ON PROPERTY AND WHICH WERE RECORDED AGAINST THE PROPERTY ON
11 JULY FIRST, NINETEEN HUNDRED NINETY-SEVEN, OR JULY FIRST OF THE YEAR
12 PRECEDING THE ADJUSTMENT, WHICHEVER IS LATER, HAVE BEEN CLEARED,
13 CORRECTED OR ABATED AND THE LANDLORD HAS RECEIVED A CERTIFICATE OF
14 ELIGIBILITY FROM THE CITY RENT AGENCY THAT THE VIOLATION CLEARING
15 REQUIREMENTS SET FORTH ABOVE HAVE BEEN MET AND FURTHER AUTHORIZING THE
16 LANDLORD TO COLLECT ANY RENT INCREASE OR ADJUSTMENT AUTHORIZED PURSUANT
17 TO THIS SUBPARAGRAPH, AND THE LANDLORD HAS SERVED SUCH CERTIFICATE UPON
18 THE TENANT RESIDING IN THE HOUSING ACCOMMODATION.
19 (D) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
20 THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
21 WITHIN THE BOARD`S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
22 ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
23 MODIFICATION.
24 (E) NOTHING CONTAINED IN THIS PARAGRAPH OR IN SUBDIVISION F OF SECTION
25 26-511 OF THIS TITLE SHALL ALTER, RESTRICT OR IMPAIR AN OWNER`S RIGHT TO
26 ESTABLISH THE INITIAL REGULATED RENT, SUBJECT TO THE PROVISIONS OF
27 SECTION 26-513 OF THIS TITLE, FOR ACCOMMODATIONS SUBJECT TO THIS CHAPTER
28 WHICH BECOME VACANT.
29 S 18. Paragraph 6 of subdivision h of section 26-405 of the adminis-
30 trative code of the city of New York is amended to read as follows:
31 (6) (A) If at least six months before the effective date of any
32 adjustment or establishment of rents pursuant to paragraph three or four
33 of subdivision a of this section, the landlord has not certified to the
34 agency having jurisdiction that (a) all rent impairing violations (as
35 defined by section three hundred two-a of the multiple dwelling law),
36 and (b) at least eighty per centum of all other violations of the hous-
37 ing maintenance code or other state or local laws that impose require-
38 ments on property that were recorded against the property one year prior
39 to such effective date have been cleared, corrected, or abated, no
40 increase pursuant to such paragraphs shall take effect until he or she
41 shall have entered into a written agreement with the city rent agency to
42 deposit all income derived from the property into an escrow or trust
43 account pursuant to subparagraph (a) of paragraph four of this subdivi-
44 sion, in addition to the procedures set forth in this paragraph and all
45 other applicable penalties and procedures under this chapter, such
46 violation shall also be subject to repair or removal by the city pursu-
47 ant to the provisions of article five of subchapter five of the housing
48 maintenance code, the landlord to be liable for the cost thereof.
49 (B) ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, TO BE
50 ENTITLED TO COLLECT ANY ANNUAL RENT ADJUSTMENTS PURSUANT TO THE
51 PROVISIONS OF PARAGRAPH TEN OF SUBDIVISION A OF THIS SECTION, A LANDLORD
52 MUST FILE WITH THE CITY RENT AGENCY, AS PART OF EACH REGISTRATION
53 REQUIRED PURSUANT TO SUBDIVISION K OF SECTION 26-409 OF THIS TITLE, A
54 WRITTEN CERTIFICATION THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO
55 MAINTAIN SERVICES FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO THIS
S. 3921 13
1 CHAPTER OR REQUIRED TO BE FURNISHED BY ANY LAW, ORDINANCE OR REGULATION
2 APPLICABLE TO THE PREMISES.
3 S 19. Section 26-409 of the administrative code of the city of New
4 York is amended by adding a new subdivision k to read as follows:
5 K. EFFECTIVE JANUARY FIRST, NINETEEN HUNDRED NINETY-EIGHT, THE CITY
6 RENT AGENCY SHALL REQUIRE THE LANDLORD OF A BUILDING OR PROPERTY
7 CONTAINING HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER, TO EXECUTE
8 AND FILE REGISTRATION STATEMENTS WITH RESPECT TO SUCH HOUSING ACCOMMO-
9 DATIONS AS FOLLOWS:
10 (1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
11 THEREOF ANNUALLY WITH THE CITY RENT AGENCY UPON FORMS AND IN SUCH MANNER
12 AS SHALL BE PRESCRIBED BY THE CITY RENT AGENCY. AT SUCH TIME, A LANDLORD
13 SHALL ALSO PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT
14 PORTION OF SUCH REGISTRATION STATEMENT AS PERTAINS TO THE TENANT`S UNIT
15 BY PERSONAL DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR
16 REGISTERED MAIL, OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
17 (2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
18 THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
19 RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
20 OR HIS OR HER AUTHORIZED REPRESENTATIVE.
21 (3) THE FAILURE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATE-
22 MENT, PURSUANT TO THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH
23 REGISTRATION IS FILED, BAR A LANDLORD FROM APPLYING FOR OR COLLECTING
24 ANY RENT IN EXCESS OF THE MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST
25 PRECEDING REGISTRATION STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN
26 FILED, THE MAXIMUM RENT IN EFFECT ON THE DATE THAT THE HOUSING ACCOMMO-
27 DATION BECAME SUBJECT TO THE REGISTRATION REQUIREMENTS OF THIS SUBDIVI-
28 SION. THE FILING OF A LATE REGISTRATION SHALL RESULT IN THE PROSPECTIVE
29 ELIMINATION OF SUCH SANCTIONS AND PROVIDED THAT INCREASES IN THE LEGAL
30 REGULATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY
31 REGISTRATION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRA-
32 TION, SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME
33 PRIOR TO THE FILING OF A LATE REGISTRATION. IF SUCH LATE REGISTRATION IS
34 FILED SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER
35 SHALL BE ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN
36 AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
37 S 20. Section 4 of chapter 274 of the laws of 1946, constituting the
38 emergency housing rent control law, is amended by adding a new subdivi-
39 sion 3-b to read as follows:
40 3-B. EFFECTIVE JANUARY 1, 1998, THE COMMISSION SHALL REQUIRE THE LAND-
41 LORD OF A BUILDING OR PROPERTY CONTAINING HOUSING ACCOMMODATIONS SUBJECT
42 TO THIS CHAPTER, TO EXECUTE AND FILE REGISTRATION STATEMENTS WITH
43 RESPECT TO SUCH HOUSING ACCOMMODATIONS AS FOLLOWS:
44 (1) EACH HOUSING ACCOMMODATION SHALL BE REGISTERED BY THE LANDLORD
45 THEREOF ANNUALLY WITH THE COMMISSION UPON FORMS AND IN SUCH MANNER AS
46 SHALL BE PRESCRIBED BY THE COMMISSION. AT SUCH TIME, A LANDLORD SHALL
47 PROVIDE EACH TENANT THEN IN OCCUPANCY WITH A COPY OF THAT PORTION OF THE
48 REGISTRATION STATEMENT AS PERTAINS TO THE TENANT`S UNIT BY PERSONAL
49 DELIVERY WITH ACKNOWLEDGEMENT OF SERVICE, CERTIFIED OR REGISTERED MAIL,
50 OR FIRST CLASS MAIL WITH OFFICIAL PROOF OF SERVICE.
51 (2) REGISTRATION PURSUANT TO THIS SUBDIVISION SHALL NOT BE SUBJECT TO
52 THE FREEDOM OF INFORMATION LAW, PROVIDED THAT REGISTRATION INFORMATION
53 RELATIVE TO A TENANT OR LANDLORD SHALL BE MADE AVAILABLE TO SUCH PARTY
54 OR HIS OR HER AUTHORIZED REPRESENTATIVE.
55 (3) FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER WHICH ARE
56 SUBJECT TO RENT ADJUSTMENTS PURSUANT TO RENT GUIDELINES BOARD ORDERS,
S. 3921 14
1 THE FAILURE TO FILE A PROPER AND TIMELY RENT REGISTRATION STATEMENT,
2 PURSUANT TO THIS SUBDIVISION, SHALL, UNTIL SUCH TIME AS SUCH REGISTRA-
3 TION IS FILED, BAR A LANDLORD FROM APPLYING FOR OR COLLECTING ANY RENT
4 IN EXCESS OF THE MAXIMUM RENT IN EFFECT ON THE DATE OF THE LAST PRECED-
5 ING REGISTRATION STATEMENT OR IF NO SUCH STATEMENTS HAVE BEEN FILED,
6 THE MAXIMUM RENT IN EFFECT ON THE DATE THAT THE HOUSING ACCOMMODATION
7 BECAME SUBJECT TO THE REGISTRATION REQUIREMENTS OF THIS SUBDIVISION. THE
8 FILING OF A LATE REGISTRATION SHALL RESULT IN THE PROSPECTIVE ELIMI-
9 NATION OF SUCH SANCTIONS AND PROVIDED THAT INCREASES IN THE LEGAL REGU-
10 LATED RENT WERE LAWFUL EXCEPT FOR THE FAILURE TO FILE A TIMELY REGISTRA-
11 TION, THE OWNER, UPON THE SERVICE AND FILING OF A LATE REGISTRATION,
12 SHALL NOT BE FOUND TO HAVE COLLECTED AN OVERCHARGE AT ANY TIME PRIOR TO
13 THE FILING OF THE LATE REGISTRATION. IF SUCH LATE REGISTRATION IS FILED
14 SUBSEQUENT TO THE FILING OF AN OVERCHARGE COMPLAINT, THE OWNER SHALL BE
15 ASSESSED A LATE FILING SURCHARGE FOR EACH LATE REGISTRATION IN AN AMOUNT
16 EQUAL TO FIFTY PERCENT OF THE TIMELY RENT REGISTRATION FEE.
17 S 21. Section 4 of chapter 274 of the laws of 1946, constituting the
18 emergency housing rent control law, is amended by adding two new subdi-
19 visions 9 and 10 to read as follows:
20 9. NOTWITHSTANDING ANY CONTRARY PROVISIONS OF THIS ACT, EFFECTIVE
21 JANUARY 1, 1998, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBDIVISION, THE
22 RENT FOR HOUSING ACCOMMODATIONS SUBJECT TO THIS CHAPTER LOCATED IN THE
23 COUNTIES OF WESTCHESTER AND NASSAU SHALL BE ADJUSTED AS FOLLOWS:
24 (A) THE RENT GUIDELINES BOARDS ESTABLISHED PURSUANT TO SECTION 4 OF
25 THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN SEVENTY-FOUR, SHALL
26 ESTABLISH ANNUAL GUIDELINES FOR THE CLASS OF HOUSING ACCOMMODATIONS
27 SUBJECT TO THIS CHAPTER LOCATED IN THE COUNTIES OF WESTCHESTER AND
28 NASSAU, IN THE MANNER PROVIDED BY SUCH SECTION. THE FACT THAT THE HOUS-
29 ING ACCOMMODATION IS SUBJECT TO THIS CHAPTER MAY NOT BE CONSIDERED AS A
30 FACTOR IN DETERMINING THE RATE OF RENT ADJUSTMENT. NOT LATER THAN OCTO-
31 BER 1, 1997, AND NOT LATER THAN OCTOBER FIRST ANNUALLY THEREAFTER, THE
32 COUNTY GUIDELINES BOARDS SHALL FILE WITH THE COMMISSION THEIR FINDINGS
33 ESTABLISHED IN CONSIDERATION OF THE ECONOMIC FACTORS LISTED IN SUBDIVI-
34 SION B OF SECTION 4 OF THE EMERGENCY TENANT PROTECTION ACT OF NINETEEN
35 SEVENTY-FOUR, AND SHALL ACCOMPANY SUCH FINDINGS WITH A STATEMENT OF THE
36 MAXIMUM RATE OR RATES OF RENT ADJUSTMENT, IF ANY, FOR ONE OR MORE CLASS-
37 ES OF ACCOMMODATIONS SUBJECT TO THIS CHAPTER WITHIN SUCH COUNTIES
38 AUTHORIZED FOR THE ADJUSTMENT OF THE MAXIMUM RENT OF THE HOUSING ACCOM-
39 MODATION FOR THE TWELVE MONTH PERIOD COMMENCING JANUARY 1, 1998, AND FOR
40 EACH SUCCEEDING TWELVE MONTH PERIOD.
41 (B) EFFECTIVE JANUARY 1, 1998, THE MAXIMUM RENT COLLECTIBLE FROM THE
42 TENANT SHALL BE THE MAXIMUM RENT COLLECTIBLE ON DECEMBER 31, 1997, AS
43 SUCH RENT MAY BE ADJUSTED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION
44 ANNUALLY, WITHOUT AN ORDER OF THE COMMISSION, OR AS ADJUSTED PURSUANT TO
45 ANY OTHER PROVISION OF THIS CHAPTER. HOWEVER, NO SUCH INCREASE PURSUANT
46 TO PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE AUTHORIZED UNTIL THE EXPI-
47 RATION OF TWELVE MONTHS FROM THE EFFECTIVE DATE OF ANY RENT ADJUSTMENT
48 AUTHORIZED PURSUANT TO REGULATIONS ADOPTED FOR RENT ADJUSTMENTS TO
49 COMPENSATE FOR UNAVOIDABLE INCREASED COSTS OF OPERATIONS AS PROVIDED FOR
50 UNDER THIS ACT.
51 (C) MAXIMUM RATES OF RENT ADJUSTMENT SHALL NOT BE ESTABLISHED MORE
52 THAN ONCE ANNUALLY FOR ANY HOUSING ACCOMMODATION SUBJECT TO THIS CHAPTER
53 WITHIN A BOARD`S JURISDICTION. ONCE ESTABLISHED, NO SUCH RATE SHALL BE
54 ADJUSTED BY ANY SURCHARGE, SUPPLEMENTARY ADJUSTMENT, REOPENER OR OTHER
55 MODIFICATION.
S. 3921 15
1 (D) NOTHING CONTAINED IN THIS PARAGRAPH OR IN SUBDIVISION D OF SECTION
2 10 OF CHAPTER 576 OF THE LAWS OF 1974 SHALL ALTER, RESTRICT OR IMPAIR AN
3 OWNER`S RIGHT TO ESTABLISH THE INITIAL REGULATED RENT FOR ACCOMMODATIONS
4 SUBJECT TO THIS CHAPTER WHICH BECOME VACANT.
5 10. ON OR AFTER JANUARY 1, 1998, TO BE ENTITLED TO COLLECT ANNUAL RENT
6 ADJUSTMENTS AUTHORIZED PURSUANT TO THE PROVISIONS OF SUBDIVISION NINE OF
7 THIS SECTION, A LANDLORD MUST FILE WITH THE COMMISSION, AS PART OF EACH
8 REGISTRATION REQUIRED PURSUANT TO SUBDIVISION 3-B OF THIS SECTION, A
9 WRITTEN CERTIFICATION THAT HE OR SHE IS MAINTAINING AND WILL CONTINUE TO
10 MAINTAIN ALL SERVICES FURNISHED OR REQUIRED TO BE FURNISHED PURSUANT TO
11 THIS CHAPTER, OR ANY OTHER STATE OR LOCAL LAW, ORDINANCE OR REGULATION
12 APPLICABLE TO THE PREMISES.
13 S 22. Paragraph (b) of subdivision 1 of section 352-eee of the general
14 business law, as added by chapter 402 of the laws of 1983, is amended to
15 read as follows:
16 (b) "Non-eviction plan". A plan which may not be declared effective
17 until at least {fifteen} THIRTY-FIVE percent of those bona fide tenants
18 in occupancy of all dwelling units in the building or group of buildings
19 or development on the date the plan {is declared effective} WAS ACCEPTED
20 FOR FILING BY THE ATTORNEY GENERAL shall have executed and delivered
21 written agreements to purchase under the plan{. As to tenants who were
22 in occupancy on the date a letter was issued by the attorney general
23 accepting the plan for filing, the purchase agreement shall be executed
24 and delivered} pursuant to an offering made in good faith without fraud
25 and WITH NO discriminatory repurchase agreements or other discriminatory
26 inducements.
27 S 23. Subparagraph (i) of paragraph (c) of subdivision 2 of section
28 352-eee of the general business law, as added by chapter 402 of the laws
29 of 1983, is amended to read as follows:
30 (i) The plan may not be declared effective until at least {fifteen}
31 THIRTY-FIVE percent of those bona fide tenants in occupancy of all
32 dwelling units in the building or group of buildings or development on
33 the date the plan {is declared effective} WAS ACCEPTED FOR FILING BY THE
34 ATTORNEY GENERAL shall have executed and delivered written agreements to
35 purchase under the plan{. As to tenants who were in occupancy on the
36 date a letter was issued by the attorney general accepting the plan for
37 filing, the purchase agreement shall be executed and delivered} pursuant
38 to an offering made in good faith without fraud and WITH NO discrimina-
39 tory repurchase agreements or other discriminatory inducements.
40 S 24. Paragraph (b) of subdivision 1 of section 352-eeee of the gener-
41 al business law, as added by chapter 555 of the laws of 1982, is amended
42 to read as follows:
43 (b) "Non-eviction plan". A plan which may not be declared effective
44 until {written purchase agreements have been executed and delivered for}
45 at least {fifteen} THIRTY-FIVE percent of THE BONA FIDE TENANTS IN OCCU-
46 PANCY OF all dwelling units in the building or group of buildings or
47 development {by bona fide tenants in occupancy or bona fide purchasers
48 who represent that they intend that they or one or more members of their
49 immediate family intend to occupy the unit when it becomes vacant. As to
50 tenants who were in occupancy on the date a letter was issued by the
51 attorney general accepting the plan for filing, the purchase agreement
52 shall be executed and delivered} ON THE DATE THE OFFERING STATEMENT OR
53 PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
54 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
55 pursuant to an offering made in good faith without fraud and WITH NO
S. 3921 16
1 discriminatory repurchase agreements or other discriminatory induce-
2 ments.
3 S 25. Subparagraph (i) of paragraph (c) of subdivision 2 of section
4 352-eeee of the general business law, as added by chapter 555 of the
5 laws of 1982, is amended to read as follows:
6 (i) The plan may not be declared effective until {written purchase
7 agreements have been executed and delivered for} at least {fifteen}
8 THIRTY-FIVE percent of THE BONA FIDE TENANTS IN OCCUPANCY OF all dwell-
9 ing units in the building or group of buildings or development
10 {subscribed for by bona fide tenants in occupancy or bona fide purchas-
11 ers who represent that they intend that they or one or more members of
12 their immediate family occupy the dwelling unit when it becomes vacant.
13 As to tenants who were in occupancy on the date a letter was issued by
14 the attorney general accepting the plan for filing, the purchase agree-
15 ment shall be executed and delivered} ON THE DATE THE OFFERING STATEMENT
16 OR PROSPECTUS WAS ACCEPTED FOR FILING BY THE ATTORNEY GENERAL SHALL HAVE
17 EXECUTED AND DELIVERED WRITTEN AGREEMENTS TO PURCHASE UNDER THE PLAN
18 pursuant to an offering made IN GOOD FAITH without FRAUD AND WITH NO
19 discriminatory repurchase agreements or other discriminatory induce-
20 ments.
21 S 26. Subdivision 2 of section 352-eee of the general business law is
22 amended by adding a new paragraph (g) to read as follows:
23 (G) THE PLAN PROVIDES THAT WITHIN THIRTY DAYS AFTER THE CLOSING OF A
24 CONVERSION PURSUANT TO THIS SECTION, THE OFFEROR SHALL ESTABLISH AND
25 TRANSFER TO THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAG-
26 ERS, A RESERVE FUND TO BE USED EXCLUSIVELY FOR MAKING CAPITAL REPAIRS,
27 REPLACEMENTS AND IMPROVEMENTS NECESSARY FOR THE HEALTH AND SAFETY OF THE
28 RESIDENTS OF THE BUILDING OR GROUP OF BUILDINGS OR DEVELOPMENT. SUCH
29 RESERVE FUND SHALL BE EXCLUSIVE OF ANY OTHER FUNDS REQUIRED TO BE
30 RESERVED UNDER THE PLAN OR APPLICABLE LAW OR REGULATION OF THE ATTORNEY
31 GENERAL, EXCEPT A FUND FOR CAPITAL REPAIRS, REPLACEMENTS AND IMPROVE-
32 MENTS SUBSTANTIALLY SIMILAR IN PURPOSE TO AND IN AN AMOUNT NOT LESS THAN
33 THE RESERVE FUND MANDATED BY THIS PARAGRAPH. SUCH RESERVE FUND ALSO
34 SHALL BE EXCLUSIVE OF ANY WORKING CAPITAL FUND AND SHALL NOT BE SUBJECT
35 TO REDUCTION FOR CLOSING APPORTIONMENTS.
36 AS USED IN THIS PARAGRAPH, "CAPITAL REPLACEMENT" SHALL MEAN A BUILD-
37 ING-WIDE REPLACEMENT OF A MAJOR COMPONENT OF THE HEATING, VENTILATION,
38 AIR CONDITIONING, PLUMBING, WIRING, ELEVATOR OR WINDOW SYSTEM, OR A
39 MAJOR STRUCTURAL REPLACEMENT TO THE BUILDING; PROVIDED HOWEVER, THAT
40 REPLACEMENTS MADE TO CURE CODE VIOLATIONS OF RECORD SHALL NOT BE
41 INCLUDED. "TOTAL PRICE" SHALL MEAN, WITH RESPECT TO COOPERATIVE CONVER-
42 SIONS, THE NUMBER OF ALL SHARES IN THE OFFERING MULTIPLIED BY THE LAST
43 PRICE PER SHARE WHICH WAS OFFERED TO TENANTS IN OCCUPANCY PRIOR TO THE
44 EFFECTIVE DATE OF THE PLAN REGARDLESS OF NUMBER OF SALES MADE; AND SHALL
45 MEAN, WITH RESPECT TO CONDOMINIUM CONVERSIONS, THE SUM OF THE COST OF
46 ALL UNITS IN THE OFFERING AT THE LAST PRICE WHICH WAS OFFERED TO TENANTS
47 IN OCCUPANCY PRIOR TO THE EFFECTIVE DATE OF THE PLAN REGARDLESS OF
48 NUMBER OF SALES MADE.
49 (I) SUCH FUND SHALL BE ESTABLISHED IN AN AMOUNT EQUAL TO EITHER THREE
50 PERCENT OF THE TOTAL PRICE OR, THREE PERCENT OF THE ACTUAL SALES PRICE
51 OF ALL COOPERATIVE SHARES OR CONDOMINIUM UNITS SOLD BY THE OFFEROR AT
52 THE TIME THE PLAN IS DECLARED EFFECTIVE, PROVIDED, HOWEVER, THAT IF SUCH
53 AMOUNT IS LESS THAN ONE PERCENT OF THE TOTAL PRICE, THEN THE FUND SHALL
54 BE ESTABLISHED AS A MINIMUM OF ONE PERCENT OF THE TOTAL PRICE; PLUS
55 SUPPLEMENTAL CONTRIBUTIONS TO BE MADE BY THE OFFEROR AT A RATE OF THREE
56 PERCENT OF THE ACTUAL SALES PRICE OF COOPERATIVE SHARES OR CONDOMINIUM
S. 3921 17
1 UNITS FOR EACH UNIT OR ITS ALLOCABLE SHARES HELD BY THE OFFEROR AND SOLD
2 TO BONA FIDE PURCHASERS SUBSEQUENT TO THE EFFECTIVE DATE OF THE PLAN AND
3 WITHIN FIVE YEARS OF THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN
4 NOTWITHSTANDING THAT THE TOTAL AMOUNT CONTRIBUTED MAY EXCEED THREE
5 PERCENT OF THE TOTAL PRICE; AND PROVIDED, FURTHER, THAT IF FIVE YEARS
6 FROM THIRTY DAYS AFTER THE CLOSING OF THE CONVERSION PURSUANT TO SUCH
7 PLAN THE TOTAL CONTRIBUTIONS BY THE OFFEROR TO THE FUND ARE LESS THAN
8 THREE PERCENT OF THE TOTAL PRICE THE OFFEROR SHALL PAY THE DIFFERENCE
9 BETWEEN THE AMOUNT CONTRIBUTED AND THREE PERCENT OF THE TOTAL PRICE.
10 SUPPLEMENTAL CONTRIBUTIONS SHALL BE MADE WITHIN THIRTY DAYS OF EACH
11 SALE.
12 (II) THE CONTRIBUTIONS REQUIRED PURSUANT TO THIS SECTION MAY BE MADE
13 EARLIER OR IN AN AMOUNT GREATER THAN SO PROVIDED. AN OFFEROR MAY CLAIM
14 AND RECEIVE CREDIT AGAINST THE MANDATORY INITIAL CONTRIBUTION TO THE
15 RESERVE FUND FOR THE ACTUAL COST OF CAPITAL REPLACEMENTS WHICH HE HAS
16 BEGUN AFTER THE PLAN IS SUBMITTED FOR FILING TO THE ATTORNEY GENERAL AND
17 BEFORE THE PLAN IS DECLARED EFFECTIVE; PROVIDED, HOWEVER, THAT ANY SUCH
18 REPLACEMENTS MUST BE SET FORTH IN THE PLAN TOGETHER WITH THEIR ACTUAL OR
19 ESTIMATED COSTS AND FURTHER PROVIDED, THAT SUCH CREDIT SHALL NOT EXCEED
20 THE LESSER OF THE ACTUAL COST OF THE CAPITAL REPLACEMENTS OR ONE PERCENT
21 OF THE TOTAL PRICE.
22 (III) ANY BUILDING, CONSTRUCTION OF WHICH WAS COMPLETED WITHIN THREE
23 YEARS PRIOR TO THE CLOSING OF A CONVERSION PURSUANT TO THIS SECTION,
24 SHALL BE EXEMPT FROM THE REQUIREMENTS OF THIS PARAGRAPH.
25 (IV) THE COOPERATIVE CORPORATION OR CONDOMINIUM BOARD OF MANAGERS
26 SHALL REPORT TO SHAREHOLDERS AND UNIT OWNERS ON A SEMI-ANNUAL BASIS WITH
27 RESPECT TO ALL DEPOSITS INTO AND WITHDRAWALS FROM THE RESERVE FUND
28 MANDATED BY THIS PARAGRAPH.
29 (V) THE OFFEROR, NOT LATER THAN THE THIRTIETH DAY FOLLOWING THE
30 ACCEPTANCE OF A PLAN FOR FILING BY THE ATTORNEY GENERAL PURSUANT TO THIS
31 SECTION AND UNTIL THE CLOSING OF THE CONVERSION PURSUANT TO SUCH PLAN,
32 SHALL POST AND MAINTAIN IN A PROMINENT PLACE, ACCESSIBLE TO ALL TENANTS
33 IN EACH BUILDING COVERED BY THE PLAN, A LISTING OF ALL VIOLATIONS OF
34 RECORD AGAINST SUCH BUILDINGS AS DETERMINED BY THE LOCAL DEPARTMENT OF
35 BUILDINGS OR SIMILAR AGENCY OF APPROPRIATE JURISDICTION. ALL NEWLY
36 ISSUED VIOLATIONS SHALL BE POSTED WITHIN FORTY-EIGHT HOURS OF THEIR
37 ISSUANCE AND MAINTAINED AS DESCRIBED ABOVE. THE OFFEROR MAY SATISFY THE
38 REQUIREMENTS OF THIS SECTION BY DESIGNATING AN AGENT ON THE PREMISES
39 WITH WHOM SUCH LISTING SHALL BE MADE AVAILABLE FOR INSPECTION BY THE
40 TENANTS.
41 (VI) WHERE, PURSUANT TO LAW OR REGULATION OF THE ATTORNEY GENERAL, AN
42 OFFEROR IS REQUIRED TO FILE A REPORT WITH THE ATTORNEY GENERAL DESCRIB-
43 ING THE CONDITION OF THE PHYSICAL ASPECTS OF THE PREMISES TO BE
44 CONVERTED AND THE SURROUNDING NEIGHBORHOOD A COPY OF SUCH REPORT SHALL
45 BE SUBMITTED SIMULTANEOUSLY TO THE LOCAL COMMISSIONER OF BUILDINGS OR
46 SIMILAR AGENCY OF APPROPRIATE JURISDICTION.
47 (VII) ANY PROVISION PURPORTING TO WAIVE THE PROVISIONS OF THIS PARA-
48 GRAPH IN ANY CONTRACT TO PURCHASE OR AGREEMENT BETWEEN AN OFFEROR AND
49 THE COOPERATIVE CORPORATION OR THE CONDOMINIUM BOARD OF MANAGERS PURSU-
50 ANT TO A CONVERSION PLAN SHALL BE VOID AS AGAINST PUBLIC POLICY.
51 (VIII) ENFORCEMENT. (1) EXCEPT AS OTHERWISE PROVIDED BELOW, ANY PERSON
52 WHO VIOLATES OR ASSISTS IN THE VIOLATION OF THIS PARAGRAPH SHALL BE
53 SUBJECT TO A CIVIL PENALTY OF ONE HUNDRED DOLLARS PER DAY PER UNIT FOR
54 EACH DAY THAT A BUILDING IS NOT IN COMPLIANCE WITH THE PROVISIONS OF
55 SUCH PARAGRAPH, PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT
56 EXCEED ONE THOUSAND DOLLARS PER UNIT.
S. 3921 18
1 (2) ANY PERSON WHO KNOWINGLY VIOLATES OR ASSISTS IN THE VIOLATION OF
2 SUCH PARAGRAPH SHALL ALSO BE SUBJECT TO A CIVIL PENALTY OF ONE THOUSAND
3 DOLLARS PER DAY FOR EACH DAY THAT THE RESERVE FUND IS NOT ESTABLISHED;
4 PROVIDED, HOWEVER, THAT SUCH CIVIL PENALTY SHALL NOT EXCEED THE AMOUNT
5 REQUIRED TO BE RESERVED PURSUANT TO THIS PARAGRAPH.
6 (3) ANY ACTION OR PROCEEDING IN ANY COURT OF COMPETENT JURISDICTION
7 THAT MAY BE APPROPRIATE OR NECESSARY FOR THE ENFORCEMENT OF THE
8 PROVISIONS OF THIS PARAGRAPH MAY BE BROUGHT IN THE NAME OF THE CITY,
9 TOWN OR VILLAGE WHEREIN SUCH BUILDING OR BUILDINGS ARE LOCATED, INCLUD-
10 ING ACTIONS TO SECURE PERMANENT INJUNCTIONS ENJOINING ANY ACTS OR PRAC-
11 TICES WHICH CONSTITUTE A VIOLATION OF ANY PROVISION OF THIS PARAGRAPH,
12 MANDATING COMPLIANCE WITH THE PROVISIONS OF THIS PARAGRAPH OR FOR SUCH
13 OTHER RELIEF AS MAY BE APPROPRIATE. IN ANY SUCH ACTION OR PROCEEDING THE
14 CITY, TOWN OR VILLAGE MAY APPLY TO ANY COURT OF COMPETENT JURISDICTION,
15 OR TO A JUDGE OR JUSTICE THEREOF, FOR A TEMPORARY RESTRAINING ORDER OR
16 PRELIMINARY INJUNCTION ENJOINING AND RESTRAINING ALL PERSONS FROM
17 VIOLATING ANY PROVISION OF THIS PARAGRAPH MANDATING COMPLIANCE WITH THE
18 PROVISIONS OF THIS PARAGRAPH OR FOR SUCH OTHER RELIEF AS MAY BE APPRO-
19 PRIATE UNTIL THE HEARING AND DETERMINATION OF SUCH ACTION OR PROCEEDING
20 AND THE ENTRY OF FINAL JUDGMENT OR ORDER THEREIN. THE COURT, OR JUDGE OR
21 JUSTICE THEREOF, TO WHOM SUCH APPLICATION IS MADE, IS HEREBY AUTHORIZED
22 FORTHWITH TO MAKE ANY OR ALL OF THE ORDERS ABOVE SPECIFIED, AS MAY BE
23 REQUIRED IN SUCH APPLICATION, WITH OR WITHOUT NOTICE, AND TO MAKE SUCH
24 OTHER OR FURTHER ORDERS OR DIRECTIONS AS MAY BE NECESSARY TO RENDER THE
25 SAME EFFECTUAL. NO UNDERTAKING SHALL BE REQUIRED AS A CONDITION OF THE
26 GRANTING OR ISSUING OF SUCH ORDER, OR BY REASON THEREOF.
27 (IX) NOTHING CONTAINED IN THIS PARAGRAPH SHALL IMPAIR ANY RIGHTS,
28 REMEDIES OR CAUSES OF ACTION ACCRUED OR ACCRUING TO PURCHASERS OF COOP-
29 ERATIVE SHARES OR CONDOMINIUM UNITS.
30 S 27. Paragraph (e) of subdivision 2 of section 352-eee of the gener-
31 al business law, as added by chapter 402 of the laws of 1983, is amended
32 to read as follows:
33 (e) The attorney general finds that an excessive number of {long-term}
34 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
35 THE DATE that the offering statement or prospectus was first submitted
36 to the department of law. {"Long-term vacancies"} "VACANCIES" shall mean
37 dwelling units not leased or occupied by bona fide tenants {for more
38 than five months prior to the date of such submission to the department
39 of law} ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
40 rate in excess of {the greater of (i) ten percent and (ii) a percentage
41 that is double the normal average vacancy rate for} FIVE PERCENT OF THE
42 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
43 development {for two years prior to the January preceding the date the
44 offering statement or prospectus was first submitted to the department
45 of law} OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
46 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
47 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
48 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
49 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
50 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
51 CAUSE SHOWN.
52 S 28. Paragraph (e) of subdivision 2 of section 352-eeee of the gener-
53 al business law, as added by chapter 555 of the laws of 1982, is amended
54 to read as follows:
55 (e) The attorney general finds that an excessive number of {long-term}
56 vacancies did not exist on the date THAT IS ONE HUNDRED TEN DAYS AFTER
S. 3921 19
1 THE DATE that the offering statement or prospectus was first submitted
2 to the department of law. {"Long-term vacancies"} "VACANCIES" shall mean
3 dwelling units not leased or occupied by bona fide tenants {for more
4 than five months prior to the date of such submission to the department
5 of law} ON SUCH ONE HUNDRED TENTH DAY. "Excessive" shall mean a vacancy
6 rate in excess of {the greater of (i) ten percent and (ii) a percentage
7 that is double the normal average vacancy rate for} FIVE PERCENT OF THE
8 TOTAL NUMBER OF DWELLING UNITS IN the building or group of buildings or
9 development {for two years prior to the January preceding the date the
10 offering statement or prospectus was first submitted to the department
11 of law} OFFERED UNDER THE PLAN, EXCEPT THAT IN A BUILDING OR GROUP OF
12 BUILDINGS OR DEVELOPMENT CONTAINING LESS THAN TWENTY UNITS, "EXCESSIVE"
13 SHALL MEAN MORE THAN ONE VACANT DWELLING UNIT. PROVIDED, HOWEVER, THAT
14 THE ATTORNEY GENERAL MAY ISSUE A LETTER STATING THAT THE OFFERING STATE-
15 MENT HAS BEEN ACCEPTED FOR FILING NOTWITHSTANDING THE EXISTENCE OF AN
16 EXCESSIVE NUMBER OF VACANCIES UPON APPLICATION OF THE OFFEROR FOR GOOD
17 CAUSE SHOWN.
18 S 29. Paragraph (c) of subdivision 1, subparagraph (v) of paragraph
19 (c) and paragraph (d) of subdivision 2 of section 352-eee of the general
20 business law are REPEALED, paragraph (e) of subdivision 2 is relettered
21 paragraph (d) and paragraph (b), the opening paragraph of paragraph (c)
22 and paragraph (f) of subdivision 2, as added by chapter 402 of the laws
23 of 1983, are amended to read as follows:
24 (b) The plan provides {either that it is an eviction plan or} that it
25 is a non-eviction plan.
26 The plan provides{, if it is a non-eviction plan,} as follows:
27 {(f)} (E) The attorney general finds that, following the submission of
28 the offering statement or prospectus to the department of law, each
29 tenant in the building or group of buildings or development was provided
30 with a written notice stating that such offering statement or prospectus
31 has been submitted to the department of law for filing. Such notice
32 shall be accompanied by a copy of the offering statement or prospectus
33 and a statement that the statements submitted pursuant to subparagraph
34 {(vii)} (VI) of paragraph (c) {or subparagraph (vii) of paragraph (d)}
35 of this subdivision{, whichever is applicable,} will be available for
36 inspection and copying at the office of the department of law where the
37 submission was made and at the office of the offeror or a selling agent
38 of the offeror. Such notice shall also be accompanied by a statement
39 that tenants or their representatives may physically inspect the prem-
40 ises at any time subsequent to the submission of the plan to the depart-
41 ment of law, during normal business hours, upon written request made by
42 them to the offeror, provided such representatives are registered archi-
43 tects or professional engineers licensed to practice in the state of New
44 York. Such notice shall be sent to each tenant in occupancy on the date
45 the plan is first submitted to the department of law and to the clerk of
46 the municipality wherein such building or group of buildings or develop-
47 ment is located.
48 S 30. Paragraph (c) of subdivision 1, subparagraph (v) of paragraph
49 (c) and paragraph (d) of subdivision 2 of section 352-eeee of the gener-
50 al business law are REPEALED, paragraphs (d), (e), (f) and (g) of subdi-
51 vision 1 are relettered paragraphs (c), (d), (e) and (f), subparagraphs
52 (vi) and (vii) of paragraph (c) of subdivision 2 are relettered subpara-
53 graphs (v) and (vi), paragraph (e) of subdivision 2 is relettered para-
54 graph (d) and paragraph (b), the opening paragraph of paragraph (c) and
55 paragraph (f) of subdivision 2, as added by chapter 555 of the laws of
56 1982, are amended to read as follows:
S. 3921 20
1 (b) The plan provides {either that it is an eviction plan or} that it
2 is a non-eviction plan.
3 The plan provides{, if it is a non-eviction plan,} as follows:
4 {(f)} (E) The attorney general finds that, following the submission of
5 the offering statement or prospectus to the department of law, each
6 tenant in the building or group of buildings or development was provided
7 with a written notice stating that such offering statement or prospectus
8 has been submitted to the department of law for filing. Such notice
9 shall be accompanied by a copy of the offering statement or prospectus
10 and a statement that the statements submitted pursuant to subparagraph
11 {(vii)} (VI) of paragraph (c) {or subparagraph (vii) of paragraph (d)}
12 of this subdivision{, whichever is applicable,} will be available for
13 inspection and copying at the office of the department of law where the
14 submission was made and at the office of the offeror or a selling agent
15 of the offeror. Such notice shall also be accompanied by a statement
16 that tenants or their representatives may physically inspect the prem-
17 ises at any time subsequent to the submission of the plan to the depart-
18 ment of law, during normal business hours, upon written request made by
19 them to the offeror, provided such representatives are registered archi-
20 tects or professional engineers licensed to practice in the state of New
21 York. Such notice shall be sent to each tenant in occupancy on the date
22 the plan is first submitted to the department of law.
23 S 31. Subparagraph (g) of paragraph 1 of subdivision g of section
24 26-405 of the administrative code of the city of New York, as amended by
25 chapter 749 of the laws of 1990, is amended to read as follows:
26 (g) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT AUTHORIZED PURSU-
27 ANT TO ITEM (II) OF THIS SUBPARAGRAPH SHALL CEASE WHEN THE OWNER HAS
28 RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT;
29 (II) There has been since July first, nineteen hundred seventy, a
30 major capital improvement {required for the operation, preservation or
31 maintenance of the structure. An adjustment under this subparagraph (g)
32 shall be in an amount sufficient to amortize the cost of the improve-
33 ments pursuant to this subparagraph (g) over a seven-year period}
34 PROVIDED, THAT THE COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED
35 DEPRECIABLE UNDER THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE
36 REQUIRED FOR THE OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUC-
37 TURE. THE INCREASE PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE
38 COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM RENT. IT SHALL BE SEPA-
39 RATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY
40 OTHER ADJUSTMENT TO THE MAXIMUM RENT. THE SURCHARGE ALLOCABLE TO EACH
41 APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT
42 DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING,
43 AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APARTMENT, PROVIDED
44 THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE YEAR MAY NOT
45 EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY
46 THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS
47 RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED FORWARD AND
48 COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDI-
49 TIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE
50 EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT
51 LIMITATION DID NOT APPLY; or
52 S 32. Subparagraph (k) of paragraph 1 of subdivision g of section
53 26-405 of the administrative code of the city of New York, as amended by
54 chapter 749 of the laws of 1990, is amended to read as follows:
55 (k) The landlord has incurred, since January first, nineteen hundred
56 seventy, in connection with and in addition to a concurrent major capi-
S. 3921 21
1 tal improvement pursuant to subparagraph (g) of this paragraph, other
2 expenditures to improve, restore or preserve the quality of the struc-
3 ture. An adjustment under this subparagraph shall be granted only if
4 such improvements represent an expenditure equal to at least ten per
5 centum of the total operating and maintenance expenses for the preceding
6 year. An adjustment under this subparagraph shall be in addition to any
7 adjustment granted for the concurrent major capital improvement and
8 shall be {in an amount sufficient to amortize the cost of the improve-
9 ments pursuant to this subparagraph over a seven-year period} IMPLE-
10 MENTED IN THE SAME MANNER AS SUCH MAJOR CAPITAL IMPROVEMENT AS A FURTHER
11 SURCHARGE TO THE MAXIMUM RENT.
12 S 33. Paragraph 6 of subdivision c of section 26-511 of the adminis-
13 trative code of the city of New York, as amended by chapter 749 of the
14 laws of 1990, is amended to read as follows:
15 (6) provides criteria whereby the commissioner may act upon applica-
16 tions by owners for increases in excess of the level of fair rent
17 increase established under this law provided, however, that such crite-
18 ria shall provide {(a)} as to hardship applications, for a finding that
19 the level of fair rent increase is not sufficient to enable the owner to
20 maintain approximately the same average annual net income (which shall
21 be computed without regard to debt service, financing costs or manage-
22 ment fees) for the three year period ending on or within six months of
23 the date of an application pursuant to such criteria as compared with
24 annual net income, which prevailed on the average over the period nine-
25 teen hundred sixty-eight through nineteen hundred seventy, or for the
26 first three years of operation if the building was completed since nine-
27 teen hundred sixty-eight or for the first three fiscal years after a
28 transfer of title to a new owner provided the new owner can establish to
29 the satisfaction of the commissioner that he or she acquired title to
30 the building as a result of a bona fide sale of the entire building and
31 that the new owner is unable to obtain requisite records for the fiscal
32 years nineteen hundred sixty-eight through nineteen hundred seventy
33 despite diligent efforts to obtain same from predecessors in title and
34 further provided that the new owner can provide financial data covering
35 a minimum of six years under his or her continuous and uninterrupted
36 operation of the building to meet the three year to three year compar-
37 ative test periods herein provided{; and (b) as to completed building-
38 wide major capital improvements, for a finding that such improvements
39 are deemed depreciable under the Internal Revenue Code and that the cost
40 is to be amortized over a seven-year period, based upon cash purchase
41 price exclusive of interest or service charges}. Notwithstanding
42 anything to the contrary contained herein, no HARDSHIP increase granted
43 pursuant to this paragraph shall, when added to the annual gross rents,
44 as determined by the commissioner, exceed the sum of, (i) the annual
45 operating expenses, (ii) an allowance for management services as deter-
46 mined by the commissioner, (iii) actual annual mortgage debt service
47 (interest and amortization) on its indebtedness to a lending institu-
48 tion, an insurance company, a retirement fund or welfare fund which is
49 operated under the supervision of the banking or insurance laws of the
50 state of New York or the United States, and (iv) eight and one-half
51 percent of that portion of the fair market value of the property which
52 exceeds the unpaid principal amount of the mortgage indebtedness
53 referred to in subparagraph (iii) of this paragraph. Fair market value
54 for the purposes of this paragraph shall be six times the annual gross
55 rent. The collection of any increase in the stabilized rent for any
56 apartment pursuant to this paragraph shall not exceed six percent in any
S. 3921 22
1 year from the effective date of the order granting the increase over the
2 rent set forth in the schedule of gross rents, with collectability of
3 any dollar excess above said sum to be spread forward in similar incre-
4 ments and added to the stabilized rent as established or set in future
5 years;
6 S 34. Subdivision c of section 26-511 of the administrative code of
7 the city of New York is amended by adding two new paragraphs 6-b and 6-c
8 to read as follows:
9 (6-B) PROVIDES CRITERIA WHEREBY THE COMMISSIONER MAY ACT UPON APPLICA-
10 TION BY OWNERS FOR INCREASES IN EXCESS OF THE LEVEL OF FAIR RENT
11 INCREASE ESTABLISHED UNDER THIS LAW PROVIDED, HOWEVER, THAT SUCH CRITE-
12 RIA SHALL PROVIDE AS TO COMPLETED BUILDING-WIDE MAJOR CAPITAL IMPROVE-
13 MENTS, FOR A FINDING THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
14 THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
15 OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
16 PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
17 SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
18 AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL ADJUSTMENT
19 OF THE LEVEL OF FAIR RENT PROVIDED FOR UNDER SUBDIVISION B OF SECTION
20 26-510 OF THIS LAW. THE SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE
21 AN AMOUNT EQUAL TO THE COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR,
22 DIVIDED BY THE NUMBER OF ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY
23 THE NUMBER OF ROOMS IN SUCH APARTMENT, PROVIDED THAT THE SURCHARGE ALLO-
24 CABLE TO ANY APARTMENT, IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL
25 TO SIX PERCENT OF THE MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH
26 APARTMENT AS SET FORTH IN THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE
27 SAID SIX PERCENT SHALL BE CARRIED FORWARD AND COLLECTED IN FUTURE YEARS
28 AS A FURTHER SURCHARGE NOT TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY
29 ONE YEAR PERIOD UNTIL THE TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD
30 HAVE BEEN IF THE AFOREMENTIONED SIX PERCENT LIMITATION DID NOT APPLY.
31 (6-C) COLLECTION OF SURCHARGES IN EXCESS OF THE LEVEL OF FAIR RENT
32 AUTHORIZED PURSUANT TO PARAGRAPH SIX-B OF THIS SUBDIVISION SHALL CEASE
33 WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT.
34 S 35. Paragraph 3 of subdivision d of section 6 of section 4 of chap-
35 ter 576 of the laws of 1974, constituting the emergency tenant
36 protection act of nineteen seventy-four, as amended by chapter 749 of
37 the laws of 1990, is amended to read as follows:
38 (3) (I) COLLECTION OF SURCHARGES IN ADDITION TO THE LEGAL REGULATED
39 RENT AUTHORIZED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH SHALL
40 CEASE WHEN THE OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL
41 IMPROVEMENT;
42 (II) there has been since January first, nineteen hundred seventy-four
43 a major capital improvement {required for the operation, preservation or
44 maintenance of the structure. An adjustment under this paragraph shall
45 be in an amount sufficient to amortize the cost of the improvements
46 pursuant to this paragraph over a seven-year period} PROVIDED, THAT THE
47 COMMISSIONER FINDS THAT SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER
48 THE INTERNAL REVENUE CODE AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE
49 OPERATION, PRESERVATION OR MAINTENANCE OF THE STRUCTURE. THE INCREASE
50 PERMITTED FOR SUCH CAPITAL IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY
51 SURCHARGE TO THE LEGAL REGULATED RENT. IT SHALL BE SEPARATELY DESIGNATED
52 AND BILLED AS SUCH AND SHALL NOT BE COMPOUNDED BY ANY ANNUAL RENT
53 ADJUSTMENT AUTHORIZED BY THE RENT GUIDELINES BOARD UNDER THIS ACT. THE
54 SURCHARGE ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE
55 COST OF THE IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF
56 ROOMS IN THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN
S. 3921 23
1 SUCH APARTMENT, PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT
2 IN ANY ONE YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE
3 MONTHLY RENT COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN
4 THE SCHEDULE OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE
5 CARRIED FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT
6 TO EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE
7 TOTAL SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMEN-
8 TIONED SIX PERCENT LIMITATION DID NOT APPLY, or
9 S 36. The second undesignated subparagraph of paragraph (a) of subdi-
10 vision 4 of section 4 of chapter 274 of the laws of 1946, constituting
11 the emergency rent control law, as amended by chapter 21 of the laws of
12 1962, is amended to read as follows:
13 No application for adjustment of maximum rent based upon a sales price
14 valuation shall be filed by the landlord under this subparagraph prior
15 to six months from the date of such sale of the property. In addition,
16 no adjustment ordered by the commission based upon such sales price
17 valuation shall be effective prior to one year from the date of such
18 sale. Where, however, the assessed valuation of the land exceeds four
19 times the assessed valuation of the buildings thereon, the commission
20 may determine a valuation of the property equal to five times the equal-
21 ized assessed valuation of the buildings, for the purposes of this
22 subparagraph. The commission may make a determination that the valu-
23 ation of the property is an amount different from such equalized
24 assessed valuation where there is a request for a reduction in such
25 assessed valuation currently pending; or where there has been a
26 reduction in the assessed valuation for the year next preceding the
27 effective date of the current assessed valuation in effect at the time
28 of the filing of the application. Net annual return shall be the amount
29 by which the earned income exceeds the operating expenses of the proper-
30 ty, excluding mortgage interest and amortization, and excluding allow-
31 ances for obsolescence and reserves, but including an allowance for
32 depreciation of two per centum of the value of the buildings exclusive
33 of the land, or the amount shown for depreciation of the buildings in
34 the latest required federal income tax return, whichever is lower;
35 provided, however, (1) that no allowance for depreciation of the build-
36 ings shall be included where the buildings have been fully depreciated
37 for federal income tax purposes or on the books of the owner; or (2) the
38 landlord who owns no more than four rental units within the state has
39 not been fully compensated by increases in rental income sufficient to
40 offset unavoidable increases in property taxes, fuel, utilities, insur-
41 ance and repairs and maintenance, excluding mortgage interest and amor-
42 tization, and excluding allowances for depreciation, obsolescence and
43 reserves, which have occurred since the federal date determining the
44 maximum rent or the date the property was acquired by the present owner,
45 whichever is later; or (3) the landlord operates a hotel or rooming
46 house or owns a cooperative apartment and has not been fully compensated
47 by increases in rental income from the controlled housing accommodations
48 sufficient to offset unavoidable increases in property taxes and other
49 costs as are allocable to such controlled housing accommodations,
50 including costs of operation of such hotel or rooming house, but exclud-
51 ing mortgage interest and amortization, and excluding allowances for
52 depreciation, obsolescence and reserves, which have occurred since the
53 federal date determining the maximum rent or the date the landlord
54 commenced the operation of the property, whichever is later; or (4) the
55 landlord and tenant voluntarily enter into a valid written lease in good
56 faith with respect to any housing accommodation, which lease provides
S. 3921 24
1 for an increase in the maximum rent not in excess of fifteen per centum
2 and for a term of not less than two years, except that where such lease
3 provides for an increase in excess of fifteen per centum, the increase
4 shall be automatically reduced to fifteen per centum; or (5) the land-
5 lord and tenant by mutual voluntary written agreement, subject to the
6 approval of the commission, agree to a substantial increase or decrease
7 in dwelling space or a change in the services, furniture, furnishings or
8 equipment provided in the housing accommodations; or (6) there has
9 been, since March {first, nineteen hundred fifty} 1, 1950, an increase
10 in the rental value of the housing accommodations as a result of a
11 substantial rehabilitation of the building or housing accommodation
12 therein which materially adds to the value of the property or appre-
13 ciably prolongs its life, excluding ordinary repairs, maintenance and
14 replacements; or (7) (I) COLLECTION OF SURCHARGES TO THE MAXIMUM RENT
15 AUTHORIZED PURSUANT TO ITEM (II) OF THIS CLAUSE SHALL CEASE WHEN THE
16 OWNER HAS RECOVERED THE COST OF THE MAJOR CAPITAL IMPROVEMENT; (II)
17 there has been since March {first, nineteen hundred fifty} 1, 1950, a
18 major capital improvement {required for the operation, preservation or
19 maintenance of the structure} PROVIDED, THAT THE COMMISSIONER FINDS THAT
20 SUCH IMPROVEMENTS ARE DEEMED DEPRECIABLE UNDER THE INTERNAL REVENUE CODE
21 AND SUCH IMPROVEMENTS ARE REQUIRED FOR THE OPERATION, PRESERVATION OR
22 MAINTENANCE OF THE STRUCTURE. THE INCREASE PERMITTED FOR SUCH CAPITAL
23 IMPROVEMENT SHALL BE COLLECTED AS A MONTHLY SURCHARGE TO THE MAXIMUM
24 RENT. IT SHALL BE SEPARATELY DESIGNATED AND BILLED AS SUCH AND SHALL NOT
25 BE COMPOUNDED BY ANY OTHER ADJUSTMENT TO THE MAXIMUM RENT. THE SURCHARGE
26 ALLOCABLE TO EACH APARTMENT SHALL BE AN AMOUNT EQUAL TO THE COST OF THE
27 IMPROVEMENT DIVIDED BY EIGHTY-FOUR, DIVIDED BY THE NUMBER OF ROOMS IN
28 THE BUILDING, AND THEN MULTIPLIED BY THE NUMBER OF ROOMS IN SUCH APART-
29 MENT, PROVIDED THAT THE SURCHARGE ALLOCABLE TO ANY APARTMENT IN ANY ONE
30 YEAR MAY NOT EXCEED AN AMOUNT EQUAL TO SIX PERCENT OF THE MONTHLY RENT
31 COLLECTED BY THE OWNER FOR SUCH APARTMENT AS SET FORTH IN THE SCHEDULE
32 OF GROSS RENTS. ANY EXCESS ABOVE SAID SIX PERCENT SHALL BE CARRIED
33 FORWARD AND COLLECTED IN FUTURE YEARS AS A FURTHER SURCHARGE NOT TO
34 EXCEED AN ADDITIONAL SIX PERCENT IN ANY ONE YEAR PERIOD UNTIL THE TOTAL
35 SURCHARGE EQUALS THE AMOUNT IT WOULD HAVE BEEN IF THE AFOREMENTIONED SIX
36 PERCENT LIMITATION DID NOT APPLY; or (8) there has been since March
37 {first, nineteen hundred fifty} 1, 1950, in structures containing more
38 than four housing accommodations, other improvements made with the
39 express consent of the tenants in occupancy of at least seventy-five per
40 centum of the housing accommodations, provided, however, that no adjust-
41 ment granted hereunder shall exceed fifteen per centum unless the
42 tenants have agreed to a higher percentage of increase, as herein
43 provided; or (9) there has been, since March {first, nineteen hundred
44 fifty} 1, 1950, a subletting without written consent from the landlord
45 or an increase in the number of adult occupants who are not members of
46 the immediate family of the tenant, and the landlord has not been
47 compensated therefor by adjustment of the maximum rent by lease or order
48 of the commission or pursuant to the federal act; or (10) the presence
49 of unique or peculiar circumstances materially affecting the maximum
50 rent has resulted in a maximum rent which is substantially lower than
51 the rents generally prevailing in the same area for substantially simi-
52 lar housing accommodations.
53 S 37. Subparagraph (e) of paragraph 4 of subdivision g of section
54 26-405 of the administrative code of the city of New York, as amended by
55 chapter 253 of the laws of 1993, is amended to read as follows:
S. 3921 25
1 (e) The landlord and tenant by mutual voluntary written agreement
2 agree to a substantial increase or decrease in dwelling space or a
3 change in the services, furniture, furnishings or equipment provided in
4 the housing accommodations. An adjustment under this subparagraph shall
5 be equal to {one-fortieth} ONE-SEVENTY-SECOND of the total cost incurred
6 by the landlord in providing such modification or increase in dwelling
7 space, services, furniture, furnishings or equipment, including the cost
8 of installation, but excluding finance charges, provided further {than
9 an owner} THAT A LANDLORD who is entitled to a rent increase pursuant to
10 this subparagraph shall not be entitled to a further rent increase based
11 upon the installation of similar equipment, or new furniture or
12 furnishings within the useful life of such new equipment, or new furni-
13 ture or furnishings. THE NEXT ANNUAL REGISTRATION STATEMENT FILED FOR
14 ANY HOUSING ACCOMMODATION SUBJECT TO SUCH RENT INCREASE SHALL CONTAIN A
15 DETAILED BREAKDOWN OF SUCH INCREASE. The owner shall give written notice
16 to the city rent agency AND TO THE TENANT of any such adjustment pursu-
17 ant to this subparagraph{.}; or
18 S 38. Paragraph 13 of subdivision c of section 26-511 of the adminis-
19 trative code of the city of New York, as added by chapter 253 of the
20 laws of 1993, is amended to read as follows:
21 (13) provides that an owner is entitled to a rent increase where there
22 has been a substantial modification or increase of dwelling space or an
23 increase in the services, or installation of new equipment or improve-
24 ments or new furniture or furnishings provided in or to a tenant`s hous-
25 ing accommodation, on written tenant consent to the rent increase. In
26 the case of a vacant housing accommodation, tenant consent shall not be
27 required. The permanent increase in the legal regulated rent for the
28 affected housing accommodation shall be {one-fortieth} ONE-SEVENTY-SEC-
29 OND of the total cost incurred by the landlord in providing such modifi-
30 cation or increase in dwelling space, services, furniture, furnishings
31 or equipment, including the cost of installation, but excluding finance
32 charges. Provided further that an owner who is entitled to a rent
33 increase pursuant to this paragraph shall not be entitled to a further
34 rent increase based upon the installation of similar equipment, or new
35 furniture or furnishings within the useful life of such new equipment,
36 or new furniture or furnishings. THE NEXT ANNUAL REGISTRATION STATEMENT
37 FILED FOR ANY HOUSING ACCOMMODATION SUBJECT TO SUCH RENT INCREASE SHALL
38 CONTAIN A DETAILED BREAKDOWN OF SUCH INCREASE.
39 S 39. Paragraph 1 of subdivision d of section 6 of section 4 of chap-
40 ter 576 of the laws of 1974, constituting the emergency tenant
41 protection act of nineteen seventy-four, as added by chapter 253 of the
42 laws of 1993, is amended to read as follows:
43 (1) there has been a substantial modification or increase of dwelling
44 space or an increase in the services, or installation of new equipment
45 or improvements or new furniture or furnishings, provided in or to a
46 tenant`s housing accommodation, on written tenant consent to the rent
47 increase. In the case of a vacant housing accommodation, tenant consent
48 shall not be required. The permanent increase in the legal regulated
49 rent for the affected housing accommodation shall be {one-fortieth}
50 ONE-SEVENTY-SECOND of the total cost incurred by the landlord in provid-
51 ing such modification or increase in dwelling space, services, furni-
52 ture, furnishings or equipment, including the cost of installation, but
53 excluding finance charges. Provided further {than} THAT an owner who is
54 entitled to a rent increase pursuant to this paragraph shall not be
55 entitled to a further rent increase based upon the installation of simi-
56 lar equipment, or new furniture or furnishings within the useful life of
S. 3921 26
1 such new equipment, or new furniture or furnishings. THE NEXT ANNUAL
2 REGISTRATION STATEMENT FILED FOR ANY HOUSING ACCOMMODATION SUBJECT TO
3 SUCH RENT INCREASE SHALL CONTAIN A DETAILED BREAKDOWN OF SUCH INCREASE.
4 S 40. Clause 5 of paragraph (a) of subdivision 4 of section 4 of chap-
5 ter 274 of the laws of 1946, constituting the emergency housing rent
6 control law, as amended by chapter 253 of the laws of 1993, is amended
7 to read as follows:
8 (5) the landlord and tenant by mutual voluntary written agreement
9 agree to a substantial increase or decrease in dwelling space or a
10 change in the services, furniture, furnishings or equipment provided in
11 the housing accommodations; provided that an owner shall be entitled to
12 a rent increase where there has been a substantial modification or
13 increase of dwelling space or an increase in the services, or installa-
14 tion of new equipment or improvements or new furniture or furnishings
15 provided in or to a tenant`s housing accommodation. The permanent
16 increase in the maximum rent for the affected housing accommodation
17 shall be {one-fortieth} ONE-SEVENTY-SECOND of the total cost incurred by
18 the landlord in providing such modification or increase in dwelling
19 space, services, furniture, furnishings or equipment, including the cost
20 of installation, but excluding finance charges provided further that an
21 owner who is entitled to a rent increase pursuant to this clause shall
22 not be entitled to a further rent increase based upon the installation
23 of similar equipment, or new furniture or furnishings within the useful
24 life of such new equipment, or new furniture or furnishings. The owner
25 shall give written notice to the commission AND TO THE TENANT of any
26 such adjustment pursuant to this clause, SUCH NOTICE SHALL CONTAIN A
27 DETAILED BREAKDOWN OF SUCH INCREASE; or
28 S 41. Section 17 of chapter 576 of the laws of 1974, amending the
29 emergency housing rent control law relating to the control of and
30 stabilization of rent in certain cases, as amended by chapter 253 of the
31 laws of 1993, is amended to read as follows:
32 S 17. Effective date. This act shall take effect immediately {and
33 shall remain in full force and effect until and including the fifteenth
34 day of June 1997}; except that sections two and three shall take effect
35 with respect to any city having a population of one million or more and
36 section one shall take effect with respect to any other city, or any
37 town or village whenever the local legislative body of a city, town or
38 village determines the existence of a public emergency pursuant to
39 section 3 of the emergency tenant protection act of nineteen seventy-
40 four, as enacted by section four of this act{, and provided that the
41 housing accommodations subject on the effective date of this act to
42 stabilization pursuant to the New York city rent stabilization law of
43 nineteen hundred sixty-nine shall remain subject to such law upon the
44 expiration of this act}.
45 S 42. Section 2 of chapter 329 of the laws of 1963, amending the emer-
46 gency housing rent control law relating to the recontrol of rents in
47 certain cases, as amended by chapter 253 of the laws of 1993, is amended
48 to read as follows:
49 S 2. This act shall take effect immediately {and the provisions of
50 subdivision 6 of section 12 of the emergency housing rent control law,
51 as added by this act, shall remain in full force and effect until and
52 including June 15, 1997}.
53 S 43. Subdivision 2 of section 1 of chapter 274 of the laws of 1946,
54 constituting the emergency housing rent control law, is REPEALED.
55 S 44. Section 10 of chapter 555 of the laws of 1982, amending the
56 general business law and the administrative code of the city of New York
S. 3921 27
1 relating to conversion of rental residential property to cooperative or
2 condominium ownership in the city of New York, as amended by chapter 253
3 of the laws of 1993, is amended to read as follows:
4 S 10. This act shall take effect immediately; provided, that the
5 provisions of {sections one, two and nine of this act shall remain in
6 full force and effect only until and including June 15, 1997; provided
7 further that the provisions of} section three of this act shall remain
8 in full force and effect only so long as the public emergency requiring
9 the regulation and control of residential rents and evictions continues
10 as provided in subdivision 3 of section 1 of the local emergency housing
11 rent control act; provided further that the provisions of sections four,
12 five, six and seven of this act shall expire in accordance with the
13 provisions of section 26-520 of the administrative code of the city of
14 New York as such section of the administrative code is, from time to
15 time, amended; provided further that the provisions of section 26-511 of
16 the administrative code of the city of New York, as amended by this act,
17 which the New York City Department of Housing Preservation and Develop-
18 ment must find are contained in the code of the real estate industry
19 stabilization association of such city in order to approve it, shall be
20 deemed contained therein as of the effective date of this act; and
21 provided further that any plan accepted for filing by the department of
22 law on or before the effective date of this act shall continue to be
23 governed by the provisions of section 352-eeee of the general business
24 law as they had existed immediately prior to the effective date of this
25 act.
26 S 45. Section 4 of chapter 402 of the laws of 1983, amending the
27 general business law relating to conversion of rental residential prop-
28 erty to cooperative or condominium ownership in certain municipalities
29 in the counties of Nassau, Westchester and Rockland, as amended by chap-
30 ter 253 of the laws of 1993, is amended to read as follows:
31 S 4. This act shall take effect immediately; provided, that {the
32 provisions of sections one and three of this act shall remain in full
33 force and effect only until and including June 15, 1997; and provided
34 further that} any plan accepted for filing by the department of law on
35 or before the effective date of this act shall continue to be governed
36 by the provisions of section 352-eee of the general business law as they
37 had existed immediately prior to the effective date of this act.
38 S 46. This act shall take effect immediately; provided that the amend-
39 ments to sections 352-eee and 352-eeee of the general business law made
40 by sections twenty-two, twenty-three, twenty-four, twenty-five, twenty-
41 seven and twenty-eight of this act shall apply only to offering state-
42 ments or prospectuses to which section 352-eee or 352-eeee of the gener-
43 al business law is applicable which are first submitted to the attorney
44 general for filing after the date this act takes effect; provided
45 further that the amendments to sections 352-eee and 352-eeee of the
46 general business law made by sections twenty-six, twenty-nine and thirty
47 of this act shall apply to every offering statements or prospectuses to
48 which section 352-eee or 352-eeee of the general business law is appli-
49 cable which is accepted for filing by the attorney general after the
50 date this act takes effect; and provided further that the provisions of
51 sections thirty-one through forty of this act shall apply only to rent
52 increases for improvements, modification or increases in dwelling space,
53 services, furniture, furnishings or equipment which are commenced or
54 first provided after the date this act takes effect.